Business
Switzerland Plans New Tax to Offset Electric Vehicle Growth

Bern, Switzerland – The Swiss government announced plans for a new tax on electric vehicles on September 26, 2025. The tax aims to replace lost revenue from the mineral oil tax as electric vehicle usage increases.
The Federal Council explained that electric car owners currently do not contribute to road maintenance through an equivalent tax. Therefore, it believes it is important for all road users to pay for infrastructure. The proposed tax plans include two options: charging by the number of kilometers driven or taxing the electricity used for recharging.
If enacted, the tax would be set at 22.8 centimes per kWh and collected directly at charging stations. This move comes as electric vehicle sales fall in Europe and Switzerland, despite a rise in overall electric vehicle adoption.
Environmental advocates welcome the idea, arguing it ensures fair funding for road maintenance while promoting sustainable transportation. However, critics worry that increased taxes could deter consumers from purchasing electric vehicles.
This proposal reflects ongoing efforts by the Swiss government to balance economic needs with environmental goals. As electric vehicles gain popularity, authorities are keen to explore new revenue streams for essential services.
The government is still seeking public feedback on this tax initiative before finalizing its plans.