Czech Republic considers Subsidies for Electric Vehicles, sparks Debate Over Potential for Abuse
PRAGUE – The Czech government is weighing a new subsidy program for electric vehicles, aiming to boost adoption but facing criticism that dealers could exploit the system by inflating prices. The potential program comes as other European nations, like France, already offer substantial incentives for electric car purchases.
While the Czech Republic currently offers companies tax breaks for emission-free vehicles, private citizens receive no direct financial assistance. The proposed subsidies would address this gap, but concerns are mounting that the program could simply increase profits for dealerships rather than genuinely lowering costs for consumers. Green Party MP Paula Piechottová has urged the government to address this potential issue during the final drafting of the proposal.
France currently provides targeted support to low-income households, contributing up to 170,000 Czech crowns (approximately €7,400) towards the purchase of an electric car. France also offers a “scrapping bonus” for those who trade in older, combustion engine vehicles for electric or hybrid models.
The new Czech initiative requires approval from the European Commission. The move also arrives as electric vehicle production is slated to increase within the country, with manufacturing planned in Mladá Boleslav and Kolín, where Toyota intends to establish its first European electric car production facility. The government has yet to announce any changes to its existing corporate incentives.
