The local effort to promote electric cars in the Greek market has slown down as a result of bureaucratic complications and the Finance Ministry’s focus on negotiations with the country’s creditors following last January’s snap elections.
Over the past few months, importing activity of electric cars has grinded to a halt as sector traders await a Finance Ministry decision determining the types of models to be considered electric cars, which, subsequently, would exempt them from a hefty luxury goods tax.
At present, only B.E.V. (Battery Electric Vehicles) type models are classified as electric vehicles by the ministry. As a result, P.H.E.V. (Plug-In Hybrid Electric Cars) and E.R.E.V. (Extended Range Electric Vehicles) have been left out of the category and, consequently, are subject to the luxury goods tax. The tax adds between 10,000 euros and 20,000 euros to the market price of each vehicle.
Lawmakers have agreed that the aforementioned categories will need to be exempted from the luxury goods tax to spur growth in this new market, currently trapped amid the doldrums as a result of slow bureaucratic progress, despite an objective set by PPC, the power utility, to play an active role in the sector, and the intention of auto manufacturers to supply electric cars to the Greek market.