Swiss Federal Council presents two plans to tax electric cars from 2030

Faced with shrinking tax revenues as more people switch to electric vehicles, the Federal Council is intending to tax electric cars from 2030 onwards. Two proposals have now been put on the table. 

Switzerland tables two plans to tax electric vehicles

The roads and motorways in Switzerland are generally paid for by those who use them, via several different revenue streams: the mineral oil tax, motor vehicles taxes, and other levies like the e-vignette. But since electric cars don’t run on petrol or diesel, the federal government is increasingly low on revenues to fund the construction and maintenance of roads. 

Transport Minister Albert Rösti has therefore submitted two different proposals on how electric vehicles can be taxed after 2030:

Plan 1: Tax on kilometres driven

The first is a new tax based on the kilometres driven, with the rate per kilometre determined by the type of vehicle and the total vehicle weight. The heavier the vehicle is, the more tax will be due. 

According to 20 Minuten, the cost would be around 7,5 cents per kilometre for an SUV, compared to 5,4 cents per kilometre for a mid-size vehicle and 3,6 cents per kilometre for a small car. The kilometres would either be self-declared or tracked using a GPS device. 

Plan 2: Tax on electricity used for charging

The second option would be to add an additional tax to the electricity that is used to charge electric vehicles. An additional electricity meter would be installed on each charging station that would measure and tax the electricity used for charging, and automatically report this to the authorities, who would then issue a tax bill. The tax would be set at 22,8 cents per kilowatt hour of charging. 

It would apply to both home and public charging stations, and households that produce their own electricity, for instance with solar panels, would not be exempt, meaning they would be taxed on the electricity they produce and feed into their vehicle. 

Critics say tax would slow acceptance of e-mobility

Rösti’s proposals were not well-received by figures from the Green party. President Jürg Grossen accused the Federal Council of “choking” e-mobility, while his party colleagues said the tax would act as a “brake” on the acceptance of electric vehicles. 

Auto Schweiz, the association of automobile importers, further added that the tax would burden private households, make emission-free driving unattractive, and make it significantly more difficult for the transport sector to achieve its climate targets. Makers of charging ports also added that the installation of an additional meter would hugely slow down the rollout of infrastructure. 

Electric car sales slowing in Switzerland

After years of growth, 2024 saw a drop in new registrations of electric cars in Switzerland, as their market share fell from 21 percent to 19 percent. Not only is the Swiss government offering fewer incentives to encourage people to purchase electric vehicles, compared to some other countries, but it’s also been slow to roll out the required infrastructure. Since so many people rent, for instance, they need the cooperation of their landlord to install an electric charging system at home. 

The proposals will remain in the consultation phase until January 2026, at which point the Federal Council will prepare a draft bill for the parliament to discuss. The issue will go to a referendum before it can go into effect by 2030, as it requires a change in the constitution.