Europe: Norway to modify car duties, but keeps electric vehicle subsidies image

The country’s government has recently announced it would reopen the discussion concerning taxes on autos, seen prohibitively high and also added it has every intention to keep up the high incentives for electric autos.

While the officials are set to discuss the possible modifications of the high level of taxes for conventionally powered vehicles, it has also pledged to keep some of the most generous brakes for electric vehicles, which have turned Norway into one of the few places in the world where the segment has a fighting chance. So far this year, no less than one in five cars sold across the Norwegian auto market has been powered by batteries. The revisions on the country’s budget shows the incredible success of electric cars across the Nordic nation that only has around five million inhabitants would deliver lower tax incomes by around two billion crowns ($267.79 million) this year due to the numerous benefits and the exemption from the value-added tax.

The current, right-wing government has announced measures aimed at reviewing the current auto duties, to be applied next year, but also added they would also “stimulate a newer, safer and more environmentally friendly car fleet.” In April, total sales of electric vehicles in Norway crossed the 50,000 units’ threshold – making up around 2 percent of the total active base of autos in Norway. According to Petter Haugneland of the Norwegian Electric Vehicle Association, the government will keep electric car subsidies until 2017 as planned, gradually axing them after that period and new tax breaks, only applied to private buyers were now extended towards leases as well.

Via Reuters