Norway is planning to restructure its tax breaks for electric vehicles, which has thus far given the country the world’s highest percentage of EV ownership, Reuters reports. Last year, the country had a 29% adoption rate for fully-electric or plug-in hybrid vehicles, the highest in the world. Much has had to do with the favourable exemptions and tax breaks such cars have enjoyed.
That may soon change, if plans outlined by the Norwegian govenrment in its draft 2018 budget comes through. The proposed “Tesla Tax,” as Norwegian media have dubbed it, will mainly affect large cars weighing more than two tons, the intention being to curb sales of luxury models such as the Tesla Model S and Model X.
The proposed move seeks to change an exemption from motor vehicle registration tax and discounts in taxation of company cars. This, it is estimated, could push up the price of a Tesla Model X by 70,000 Norwegian krone (RM37,375).
Tesla sales in the country have been on the increase, acccording to official sales statistics – in the first nine months of this year, 4,717 cars were shifted, a climb of almost 90% from 2,500 in the same period of 2016. Tesla hasn’t been the only performer – other carmakers such as Nissan and Volkswagen have also seen sales of their alternative fuel models rise in Norway.
The reasoning for the move was provided by environment minister Vidar Helgesen, who said that large electric cars wear out the roads just as much as normal cars. He added that electric car subsidies in Norway were originally introduced to encourage small, domestically-produced electric cars, rather than luxury imports for the rich.
The proposal isn’t all gloom, because electric cars will still be accorded significant advantages in comparison with cars running on fossil fuels, and the structure will keep in place breaks from value-added tax and benefits for zero carbon pollution. The country has said it plans to stop the sale of petrol and diesel-powered vehicles by 2025.
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Tesla RV up up and away.
In Mesia, 30% price cut mainly approved for the rich to enjoy cheaper luxury car from Hybrid 3STAR, BMW, AUDI, VOLVE from ~500k/400k to ~300k/200k . But poor-middle class suffering ○zero “0” price cut, evidence of Honda City/Jazz still selling same petrol car price, not the -30%@rm50k. Very sad, mai.miti…
Norway is well planned. They don’t have dunggu bodies like MAI in Malaysia who one day say got tax breaks and another day say got no tax breaks. Lalang.
We must learn from Norway how to run a proper Government
This I can agree. Just leave the emasculation of men out and we’ll be alright.
well the norway Inland revenue board sure knows how to make extra $$$ for 2018. Our IRB should take note too. ‘large cars will wear our roads faster’…man thats the 1st time ive heard such kind of excuse to raise car tax. :)
With current march to engine downsizing & hybridisation/ EVfication, soon traditional tax bracket based on CC will be ineffective. So too with emission standards which can be cheated.
But if MY gov take a leaf from above and tax based on vehicle weight, then theres no escape, unless SUVs made completely from carbon fibre. Norway just found a way to perpetually tax car buyers & make bashers angry, bravo!
its a fact.. heavy or heavier vehicles do wear out roads quicker.