German Cabinet Passes E-Vehicle Tax Breaks to Combat Emissions

Germany’s federal cabinet approved a package of tax breaks to jumpstart its flagging electric-car sector.

The draft proposal from the Federal Ministry of Finance, approved July 31, targets company-owned vehicles as well as companies in the delivery vehicle sector. The tax breaks must still be approved by the German parliament, once it returns in September from its summer recess.

The proposal extends until 2030 an incentive that halves the tax—calculated at 0.5% of a car’s list price instead of 1%—for employees who use e-cars and plug-in hybrids provided by their companies. The draft also includes plans to allow buyers ...