Norway Runs Out of Gas-Guzzling Vehicles to Tax

In an attempt to recoup the lost revenue, officials removed electric cars on special condition, sparking intense debate and concern that the country could undermine its intent not to sell new cars. have combustion engines by 2025. 2017. Today, Norway’s center-left coalition government is considering removing a broader list of incentives as part of ongoing budget negotiations.

There is widespread uncertainty as to what taxes will be refunded. But national car associations and environmental groups believe the four most likely to return are taxes for plug-in hybrids, a tax for second-hand EV sales, a tax for “ luxury EVs “worth more than 600,000 Norwegian krone ($ 68,650), and the resurrection of the annual property tax for EVs.

Labor Party MP Frode Jacobsen would not comment in detail on the ongoing budget discussions, but he confirmed that current proposals include raising taxes for some plug-in hybrids. The tax for “luxury EVs” will not be included in next year’s budget, he added, even if he doesn’t say it will be eliminated in subsequent years.

In another country, it would be surprising for a left -wing government to support such policies. But Lasse Fridstrøm, senior research economist at Oslo’s Institute of Transport Economics, a research institution, says there’s a sense in the whole political color that it’s time to tax EVs now that they’re gone. new. “The new Labor government is just hiding the proposal made by the former right or Conservative government,” he added. “So yes, there is consensus. But environmentalists, of course, are not happy.

Norwegian environmentalists say they are not against the idea of ​​taxing EVs as long as the tax for fossil fuel vehicles remains high, too. But there are worries about wrong taxes coming soon. “It can lead to big setbacks,” Hauge said. “The reintroduction of VAT for cars over 600,000 krone seems like a strange thing to do because those are the cars that are useful” in rural areas where people spend more time on the road — and have to drive EVs long distances, he said.

Berve is also worried about timing. He believes a tax on the sale of used electric cars could weaken the market before it has a chance to develop, while a tax on hybrids could hurt drivers living in the north of the country without access to the many billing infrastructure available at. in the south. He echoed the Norwegian consensus that hybrids are a “transitional technology” that will eventually prevent complete electrification. “However, this is a transitional technology that we believe is still needed because [the EV market is] not yet fully mature, ”he added. Case in point: EVs make up only 15 percent of the total car population in Norway, according to the Road Traffic Information Council. This is a large number of global standards, but there is a long journey.

Unni Berge of the Norwegian Electric Vehicle Association, a consumer group representing EV drivers, says it’s not the existing EV drivers who are threatened with withdrawing incentives-but people who have not yet joined their ranks. “We are not fighting for our members but fighting for new people to become EV drivers,” he said, adding that the main purpose of the group is to ensure that VAT and purchase tax exemptions remain in place.

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