May 23, 2008 / 10:55 AM / 11 years ago

German car tax plan to be delayed - government

BERLIN, May 23 (Reuters) - The German government’s controversial plans to change rules on car tax from 2009 to take exhaust emissions into account will likely be delayed further, government officials said on Friday.

The proposals were due to be signed off in cabinet next Tuesday but the finance, economy and environment ministries have been unable to reach final agreement and they are now due to be discussed in cabinet on June 18, officials said at a regular news conference. The measures, part of a climate protection package agreed last year, have stoked tensions within Germany’s ruling conservative-Social Democrat coalition.

Government sources said there was a risk the car tax changes will not now receive cabinet approval before the summer break.

The measures need the backing of the upper house Bundesrat where the 16 states are represented as they receive around 9 billion euros ($14.2 billion) of annual income from the levy.

Germany’s previous government of Social Democrats and Greens, which ruled from 1998 until 2005, failed in its bid to change car tax rules to take account of exhaust emissions, mainly due to opposition from the states.

The climate package also contains new rules to promote environmentally friendly energy use in homes as well as plans to extend the reach and capacity of power supply cables. (Reporting by Markus Wacket, writing by Iain Rogers; editing by Sue Thomas)

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