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12 Dec 2017

Transport minister rejects VW CEO鈥檚 proposal on abolishing diesel tax breaks

Frankfurter Allgemeine Zeitung

The German government has rejected a proposal by VW CEO Matthias M眉ller to abolish the tax privilege for diesel cars, the Frankfurter Allgemeine Zeitung reports. 鈥淭here are currently no plans by the federal government to change the taxation of diesel cars鈥, government spokesman Steffen Seibert said. Acting transport minister Christian Schmidt also opposed another remark by M眉ller on introducing a so-called blue badge for vehicles meant to prevent vehicles with very high emissions from entering inner cities. 鈥淚t鈥檚 quite surprising that the car industry calls for driving bans鈥, Schmidt said, adding that the scheme amounted to 鈥渆xpropriation of millions of diesel car owners鈥. The transport ministry argued there already was a 鈥powerful ad-hoc programme鈥 in place to improve air quality and prevent driving bans. However, the environment ministry seconded M眉ller by saying that diesel cars only merited a tax break if they are more environmentally friendly. 鈥淚t doesn鈥檛 look like that鈥檚 the case for now鈥, a spokeswoman of environment minister Barbara Hendricks said.

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