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Tesla to be more competitive in Europe with upcoming car tax policy update

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Tesla’s Model 3 push in Europe might see a remarkable boost, thanks to a possible policy update that would abolish import duties on American automobiles entering the area. The possible update was related by German Economy Minister Peter Altmaier to German newspaper Welt am Sonntag on Sunday.

“We have already said we are prepared to bring tariffs on important industrial goods down to zero. This would remove accusations that US automobile tariffs are lower than EU ones,” he also said.

The Economy Minister said the European Union would offer US exporters additional incentives, such as sparing them from the necessity to reevaluate their goods under EU legislation. Explaining further, Altmaier noticed a continuing tariff war between the EU and the United States would only hurt both markets, according to a report from Sputnik News.

Altmaier’s recent remarks appear to be a direct reaction to US President Donald Trump’s statements back in May, when he said he might slap tariffs of up to 25 percent on European automobiles and auto parts. Trump, who has promised a stance alleging unfair trade connections between the US and the EU, has postponed his conclusion about the extra tariffs until November this year.

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Following a conversation with US trade representative Robert Lighthizer, ” the German Economy Minister mentioned earlier this month a solution to the dispute between the US and the EU may be reached at the end of the year.

Presently, the EU imposes export taxation of about 10 percent on automobiles entering in the United States. This extra tax, which is located together with their VAT that car buyers need to pay when purchasing a vehicle, has come to be an unnecessary handicap for companies including Tesla, whose automobiles become more expensive compared to local offerings.

If Europe does end up cutting off the import tax on American automobiles, Tesla’s lineup will immediately become more affordable. This policy update would arrive in at the perfect time as well, since Tesla is currently beginning its Model 3 push into the area. Such an update would probably cause some ripples in Europe’s EV market, as local producers will shed one of the key advantages to companies like Tesla.

The Tesla Model 3 holds a whole good deal of potential to the European industry. Being smaller than the Model S and Model X, the Model 3 is still a better fit for European territories that traditionally have smaller roads. The automobile ’s all-electric character also matches perfectly with the area ’s competitive attempts at embracing a zero-emissions fleet too.

This was demonstrated earlier this month, when the UK Treasury affirmed that workers who drive zero-emission company automobiles would pay no benefit-in-kind (BIK) tax for the calendar year, making vehicles such as the Model 3 much more cost-effective and practical compared to gas-powered competitors like the BMW M3.

The article Tesla to become more competitive in Europe with upcoming car tax policy update appeared initially on TESLARATI.

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