Adoption of electric vehicles (EVs) has been lagging in Greece. However, current government pushes to change the mobility status quo in Greece and to accelerate the transition to EVs.
On June 5th the World Environment Day, Greek government officially announced an emblematic initiative for the future of mobility in Greece. Greek Prime Minister Kyriakos Mitsotakis introduced the new government plan offering incentives to increase adoption of electric cars.
The plan includes financial subsidies and tax advantages for acquiring new EVs and favorable parking and charging regulation, for both company and private electric cars.
- 15% and up to 5.500 € government grant to support the purchase or leasing of a new private or company owned fully electric car.
- 1.000€ additional grant when retiring an older ICE vehicle
- 500 € government grant to support the purchase of a wifi enabled charge point/ wallbox
The first phase of the EV adoption support program will have a total budget of 100 million euros within 18 months and will support the acquisition of 14,000 new electric cars and 1000 home charging spots.
When calculating company expenses and asset depreciation for tax purposes, initial value of electric cars be actual price paid x 150% . ( 130% for charging stations). This leads to significantly higher depreciation expense and therefore lower taxes for companies purchasing EVs and charging stations. ( Earnings tax rate for Private companies in Greece is 24%)
When adding up direct grants and tax exemptions, the total benefit per vehicle could be up to 10,000 euros.
It is a comprehensive plan that requires the cooperation of the state, local government, private companies and individuals. For this reason, the implementation is accompanied by an broader EV support agreement, which will be signed by 19 agencies and two ministries, to turn the plan into a reality the sooner, the prime minister added.On improving public transportation, the government also aims to gradually replace petrol-powered buses with electric ones.
Electric vehicles will be exempt from parking fees for two years and Electric car drivers will be excluded from paying road tax for two years.
Time to change has come
Greece, a land gifted with abundant green energy potential currently has a limited penetration of electric cars. Only 1,000 electric cars — 0.3% of its fleet — are registered in Greece, a very low rate compared to other EU countries, such as Germany, where EVs account for about 10% of the fleet. (Source) However, the Greek Government hopes that Greek citizens will embrace the plan so that the government can set more ambitious targets soon. Tax breaks and subsidizing described above kicking in through 2020 and 2021 will be a step forward toward cleaner mobility in Greece.
It appears that the current government is aiming to reform not only the type vehicles purchased by Greek citizens but on a greater scale the population’s lifestyle towards to a more sustainable, green, innovative attitude.
Our company’s role
LOADER EV charging solution aims to provide tech solutions to accelerate the transition to cleaner energy. We are developing a blockchain based charging station management app. The project won the first prize of Hellenic Ministry of Energy Innovation competition and has been selected by European commission among the top 10 projects for Digital Innovation Challenge.
Source: https://medium.com/loader-en/greece-plugs-into-the-future-b88f1bbb55b4Follow our publication here in Medium to stay up-to-date with updates in the e-mobility sector.