A new government subsidy opens up electric car ownership in Czechia

Published: 26.03.2024 Related countries:  India India

Aiming to encourage Czechia’s switch from internal combustion engine to electric vehicles, the Ministry of Industry and Trade has introduced a subsidy that supports entrepreneurs and businesses buying electric vehicles. For new program called the “Electric Mobility Guarantee” the Ministry of Industry and Trade have allocated 65 mil EUR to support purchases of electric cars.

A subsidy for businesses and entrepreneurs will accelerate changes to driving habits by significantly discounting the cost of buying an electric vehicle. The subsidy does not differentiate between applicants according to size, so small, medium and large enterprises can apply. The beneficiary must be registered for income tax. Only those enterprises owned by local authorities are excluded.

The value cap for cars bought through the subsidy program means support is being targeted at more affordable segments of the automotive industry. This, it’s hoped, will ensure that the contribution benefits ordinary people who are keen to make the switch to electric mobility. There is, after all, a pressing need to widen the appeal of electric cars, as the share of electric vehicle sales in Czechia is significantly below the EU average.

For the buyers, this means a contribution of 7900 EUR for the purchase of a single electric car, or 11 800 EUR for the purchase of heavier electric vehicles. To be eligible for the subsidy program, cars cannot be worth more than CZK 59 000 EUR excluding VAT. Applications for the subsidy open at the end of March 2024, with companies of any size as well as individual entrepreneurs eligible to apply.

Another section of the subsidy, worth 11 mil EUR, is dedicated to the construction of electric car charging stations. The development of sufficient charging infrastructure is crucial to the widespread adoption of electric vehicles. Taken together, these contributions will enable companies and individuals to fully step into the electric era.

Source:  www. expat.cz

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