The Swiss Federal Council has announced the removal of the 4% import tax break on electric vehicles (EVs) — a policy that has been in place since 1997. This move marks a significant shift in Switzerland’s EV strategy as the country continues to see strong adoption of electric cars.
According to the government, EVs now make up around 23% of all imported vehicles, signaling that the market has matured beyond the need for tax incentives. Additionally, the average cost of EVs has dropped considerably, making them more accessible to Swiss consumers without state support.
Why Switzerland Is Ending the EV Tax Break
The decision to phase out the Switzerland EV tax break is driven by two main factors:
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Widespread EV adoption — The number of imported EVs has increased sixfold between 2018 and 2022, reaching about 45,000 units last year.
Infrastructure funding — The government plans to invest the additional revenue into improving public transport and the national highway network. Officials estimate the removal of the tax break could generate CHF 2–3 billion annually in extra funds.
Reactions from Car Dealers and Environmental Concerns
Not everyone supports the decision. Swiss car dealers have expressed concerns, arguing that the end of the EV import tax break could hurt sales and slow the transition to cleaner mobility. They also questioned whether the policy change aligns with the government’s long-term CO2 reduction goals.
What This Means for Switzerland’s EV Market
While the removal of the Switzerland EV tax break may slightly raise the cost of electric cars, it also reflects the country’s confidence in the EV sector’s stability. With strong demand and a growing charging infrastructure, Switzerland is expected to remain a leading EV market in Europe — even without tax incentives.
