The Swiss canton of St Gallen has introduced a revised motor vehicle tax that in many cases imposes higher charges on electric vehicles than on comparable petrol cars, prompting criticism from drivers and political groups who say the reform undermines climate objectives.
Under the new bonus-malus system, which took effect on Jan. 1, 2026, authorities calculate the levy based partly on vehicle weight and engine output. While the framework is intended to reward efficient models and penalise inefficient ones in a “technology-neutral” manner, the methodology has led to higher base taxes for many battery-electric vehicles because their heavy battery packs increase overall mass and power requirements.
Switzerland’s vehicle taxation system varies by canton, with regional governments setting their own motor vehicle taxes in addition to a federal automobile tax of 4% on new vehicle purchases. Some cantons grant full exemptions for electric vehicles, while others provide partial reductions. St Gallen’s reform also ended previous tax advantages by explicitly including electric cars in the annual levy.
Authorities attempted to offset the higher base rate with a bonus for energy-efficient vehicles, a category that includes most EVs. However, the incentive applies only for the first four years of ownership. After that period, many electric models become more expensive to tax than petrol or diesel equivalents, according to calculations cited in local media.
Public reaction has been strongly negative. “I feel cheated,” one electric car owner told the St. Galler Tagblatt, while another said, “The St Gallen government is not taking climate change seriously.” The Green Liberal Party (GLP) has also criticised the reform, arguing that making conventional vehicles cheaper over time contradicts environmental policy goals.
Comparisons published by the newspaper illustrate the disparity. A petrol-powered Volkswagen Golf incurs an annual tax of 346 Swiss francs, while the electric Volkswagen ID.3 costs 363 francs despite receiving a 25% efficiency bonus — and is expected to become significantly more expensive once the bonus expires. Similarly, the electric Fiat 500 initially benefits from a low rate of 161 francs compared with 267 francs for a hybrid version, but its tax rises to 322 francs after four years, surpassing the hybrid model.
Until recently, electric vehicles were exempt from motor vehicle taxes in most Swiss cantons, making the St Gallen policy a notable departure. Critics say the change risks discouraging EV adoption, particularly when neighbouring regions continue to offer tax relief for zero-emission vehicles.
Source: tagesanzeiger.ch, blick.ch
