Context: Forta funds under pressure
The Forta fund, which finances Switzerland’s national roads and urban traffic, is funded by the gasoline tax. As electric vehicles become more common and fuel revenues shrink, Forta’s reserves have begun to tighten. Officials report that for the first time the reserves fell from CHF 3.83 billion in 2023 to about CHF 3.67 billion, triggering renewed scrutiny of how road upkeep will be financed in a changing transport landscape.
The trend puts policymakers in a bind: keep funding road maintenance with traditional fuel taxes or find new sources as vehicle fleets shift toward electricity. The question now is whether a proposed levy on electric vehicles can bridge the gap without undermining the broader climate and mobility goals that many political leaders have embraced.
The proposed tax on electric vehicles
In response to the shrinking Forta pot, lawmakers are weighing a tax designed specifically for electric vehicles. The plan contemplates a charge tied to EV ownership or usage—potentially an annual per-vehicle fee, or a charging-related levy that would contribute to road financing. Proponents argue that even if EVs produce fewer emissions, they still rely on roads and public infrastructure that require funding, and those costs should be shared fairly across all vehicle types.
Critics, however, contend that a new tax on EVs could dampen Switzerland’s ambitious climate objectives by increasing the total cost of ownership for electric cars. They warn that higher upfront or ongoing costs could slow adoption, especially for families and first-time buyers who are weighing EVs against traditional vehicles.
Key concerns and questions
Among the central questions are who would bear the burden, how exemptions would be structured, and how the tax would be administered. Advocates for a targeted approach argue for protections for lower-income households and for vehicles that meet stringent emissions standards; opponents call for carefully calibrated rates to avoid discouraging the transition to cleaner mobility.
Fiscal implications and policy options
Analysts note that any EV levy should be designed to minimize distortion in consumer choices while ensuring administrative simplicity. Alternatives proposed by experts include:
- A gradual adjustment of existing fuel taxes as EVs increase their share of the fleet, coupled with a commensurate earmarking of funds for road maintenance.
- A road-user charging system based on mileage or vehicle weight, scaled to use rather than ownership alone.
- Targeted subsidies or tax credits for low-emission vehicles to preserve incentives for cleaner mobility while funding infrastructure from broader revenue streams.
Officials emphasize that any new measure would need a transparent impact assessment, clear exemptions where warranted, and an implementation timeline that minimizes disruption to owners and manufacturers.
Public reaction and political stakes
Reaction to the proposal has been mixed. Road users’ associations and some car clubs warn that new costs could erode trust in public policy and slow the already accelerating transition to electric transport. Environmental groups argue that the revenue gap should be closed with a broader suite of reforms that preserve incentives for EV adoption while protecting road safety and maintenance standards. The debate reflects a broader tension in many countries: balancing fiscal sustainability with aggressive environmental and mobility goals.
What happens next
Parliamentary committees are expected to study the proposal in the coming months, with revisions likely to address equity, administrative feasibility, and potential exemptions. If the plan moves forward, a phased rollout could begin in a future budget cycle, aligning Forta’s funding framework with Switzerland’s evolving vehicle fleet. The outcome will influence not only road funding but the pace and affordability of electric vehicle adoption across the country.
Conclusion
Switzerland stands at a crossroads: maintain robust road maintenance funding in the face of shrinking petrol revenues or redesign the financing model in a way that preserves momentum toward electric mobility. The proposed electric vehicles tax aims to fill a revenue gap, but its success will depend on careful design that protects both drivers and the climate goals that many voters expect policymakers to uphold.
