Germany to double climate protection surcharge on gas guzzlers from 2021 - draft

FILE PHOTO: Cars pass a sign alerting about fine particulates on a busy street in downtown Stuttgart, Germany, February 6, 2019. REUTERS/Michael Dalder

BERLIN (Reuters) - Germany is planning to increase its climate protection surcharge on the motor vehicle tax for new cars from 2021 in a way that buyers of gas guzzlers such as large SUVs will have to pay much more taxes, a draft law showed on Monday.

The new regulation means that the surcharge would double for buyers of new cars with carbon dioxide emissions of more than 195 grams per kilometre, the draft of the finance ministry showed.

Buyers of smaller cars with carbon dioxide emissions below 95 grams do not face any additional surcharge while electric cars are totally exempt from any motor vehicle tax until the end of 2030, according to the draft law which is now to be discussed internally among ministries.

Reporting by Markus Wacket; Writing Michael Nienaber; Editing by Riham Alkousaa