Policymakers face major challenges in road passenger transport. Existing taxes, levies, subsidies and support programmes do not sufficiently take into account the climate-, transport- and budget-related imperatives that will become increasingly salient over the course of this decade. The existing fiscal architecture prevents the required savings on fuel consumption and sets incentives for ever more car traffic and ever more demand for roads and public space. This will lead to ever higher costs, for car drivers and for society in general.
In order to make the portfolio of fiscal policy instruments fit for the transformation of the transport sector beyond the current legislative period and beyond 2030, they must be adapted to current and future requirements, coordinated with one another and supplemented in a targeted manner with future-proof and intelligent solutions. Above all, a new fiscal architecture must ensure that passenger car transport makes its fair contribution to achieving climate targets, that high-quality transport infrastructures and mobility services for all can be financed, and that competition for the scarce resource of public space is alleviated and road capacities are not overloaded.
In this discussion paper, we outline the key elements of a fiscal reform for fair prices in road transport. These include the reform of vehicle taxation, car purchase subsidies and company car taxation, a lump-sum payment to compensate for additional burdens - financed by raising the CO2 price on fuels - and the introduction of a mileage-based passenger car toll. The paper is intended to encourage a systematic approach to the challenges ahead that creates planning and investment security for all, clearing the way for the mobility of tomorrow.