After an in-depth analysis of the subsidies deemed illegal by the World Trade Organization (WTO), attributed by the Chinese State to local manufacturers, and the European Union (EU) announcing that it intended to additionally tax these vehicles between 17.4% and 38.1%, depending on the level of incentives received by the Government, followed by a period of extensive negotiations between European and Chinese representatives. But no agreement was reached and The EU is expected to vote on whether to approve these measures in September.
Europe penalizes Chinese trams, between 17.4% and 38.1%
All electric vehicles from China will have to bear this new additional tax upon arrival in Europe, including those bearing the badges of European or North American manufacturers. And while the American and Canadian governments chose to apply an additional 100% tax on top of what was previously in place, the European Union chose to vary the additional tax between 9% (for Tesla, which has since been reduced to 7.8%) and 38.1% (for Chinese brands that did not cooperate with the investigation, with Geely, which includes Volvo and Polestar, falling from 19.9% to 18.8% and SAIC, which includes MG, falling from 36.6% to 35.3%), passing through intermediate rates of 17.4% and 20.8%. This is in addition to the 10% applied until now.
Taxes on Chinese Teslas and Minis fall by 56% and 43%. But there are some that fall less.
If the new taxes are approved during the month of September, The measures will begin to penalize Chinese trams from November 1.This is based on the principle that the vote reaches a qualified majority, which can only be annulled if at least 15 countries, representing 65% of the EU’s inhabitants, vote against the implementation of the measure, which has already been approved by all 27.
Source: Observadora
