According to the German press agency (dpa), the German cabinet took a notable decision on Wednesday --- to grant tax relief for electric or hybrid company cars. The move is apparently aimed at increasing the adoption of electric vehicles (EVs) in Germany.

As a result of the decision by the German government, the large scale subsidy will be applicable to electric or hybrid company cars which are either purchased or leased between January 1, 2019 and December 31, 2021.

Till now, employees driving company cars privately were required to file a monetary benefit of 1 percent of the official list price of the car. This tax will be reduced by half -- to 0.5 percent -- for electric and hybrid vehicles in the future.

Describing the government’s decision to grant tax relief for electric or hybrid company cars as a “good contribution” to greater electric mobility, the German Association of the Automotive Industry (VDA) said that the new regulation will hold immense significance in 2019 and 2020 because of the imminent launch of several new models.

About the move, German transportation minister Andreas Scheuer (CSU) said that the new regulation “will also enable an active second hand car market to establish itself,” and added: “This makes e-vehicles cheaper and more interesting for a broad customer group.”