Home » Technology » NAF believes that the increase in VAT for electric cars could mean 270,000 fewer electric cars on the roads

NAF believes that the increase in VAT for electric cars could mean 270,000 fewer electric cars on the roads

The Norwegian Automobile Association (NAF) writes in a statement.

The government has not announced full VAT, but NAF fears that the government’s planned tax hike will also slow the increase in the share of electric cars on Norwegian roads.

– The increase in taxes on electric cars will have a triple negative effect. It will be more expensive to switch to an electric car, emissions will be higher, and people in rural areas may be stuck with petrol and diesel cars, which are becoming more and more expensive to use.says Ingunn Handagard, Naf’s press manager.

More tax increases

The government has agreed that anyone who buys an electric car at a price above 500,000 must pay VAT on the difference between that amount and the price of the car. In addition, there is a weight tax for all cars, which will raise the maximum rate for electric cars in the toll ranges from 50 to 70% of what fossil car owners have to pay.

The changes have not yet been adopted, but are part of the state budget proposal that will have to be considered by the Storting.

Handgard tells NTB that, after calculating specifically what VAT will mean for electric cars, the reason is that the Transport Economics Institute has figures they can use as a starting point and has estimated how sales of electric cars will develop at different tax levels, in a report which was released last year.

He believes that sales are hardly affected

NTB asked the Ministry of Finance how it assesses the consequences of the tax changes adopted and whether it is appropriate to further increase the tax level.

Secretary of State Lars Wangen (Sp) replies that the government’s proposal is believed not to significantly affect the share of electric cars.

He also points out that Norwegians already buy mainly electric cars.

– So far this year, 80 percent of all new cars are electric cars. We are therefore well on our way to the goal that all new passenger cars must be zero-emission cars by 2025, writes Wangen in an email to NTB.

If it is relevant to introduce full VAT on long-term electric cars, Wangen will not respond.

– The government could revert to future tax changes in subsequent budgets.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.