Monday, April 7, 2025

Trialled in Denmark – Sweden says no to new car tax

There will be no mileage tax in Sweden, not even though they are currently experimenting with the system here.

The kilometer tax is now facing clear opposition from politicians in Sweden, where the Riksdag, which corresponds to the Folketing, clearly says no to the tax.

It also doesn't matter that there is currently an experiment with kilometer-based taxes underway in Denmark. Read more about it here .

The current taxation of cars in Sweden is based on the official CO2 emissions per kilometer.

This means that the tax is the same regardless of whether a car owner drives 10,000 or 100,000 kilometers annually.

For cars that emit less than 95 grams of CO2 per kilometer, no car tax is paid in Sweden, only an administration fee of a few hundred kroner.

Norway also says no to kilometer tax

The idea behind a kilometer charge is that drivers pay based on actual use of the road network rather than a fixed annual amount.

Every short kilometer would thus trigger a toll. Arguments for such a model are that heavy electric vehicles should also contribute to the financing of the roads they wear down.

Furthermore, the state loses revenue because more people choose an electric car, which is not subject to the same taxes as diesel and gasoline cars.

Despite these arguments, political interest in a kilometer tax in Sweden is limited. A poll conducted by Vi Bilägare of the parties in the Riksdag shows that the general answer is a resounding no, thank you.

Only two parties, the Centre Party and the Christian Democrats, believe that the possibilities of imposing mileage taxes on cars should at least be investigated.

However, the Center Party is not in principle a supporter of the model, but is seeking alternative ways to finance the maintenance of the road network.

Ulrika Heie (C), chairwoman of the Traffic Committee, tells the media that the party is generally critical of the prospect of imposing more taxes on motorists.

– We have a critical attitude towards mileage charges. It can hit those who live and work in rural areas particularly hard.

– However, we think it is necessary to at least examine how we can shift the tax burden in the transport sector to something greener.

In Norway, too, the ruling politicians are opposed to a kilometer tax, even though Norway's car fleet has a high proportion of electric cars, and the revenue from traditional car taxes is therefore even lower than in both Sweden and Denmark.

Finance Minister Trygve Slagsvold Vedum explains to the news agency NTB that a kilometer tax is out of the question because people are dependent on their cars.

– People in Norway are completely dependent on the car. So we don't want to roll out such a large new system.

The same argument is used by Swedish politicians. Carina Ödebrink (SD), member of the Traffic Committee, says that the kilometer tax has too great, negative consequences.

In Iceland, however, the parliament, the Althingi, is in the process of introducing a mileage tax for all types of cars. So far, the tax has only applied to electric cars, plug-in hybrids and hydrogen cars. It is expected that infrastructure charges, which have so far only been paid by petrol and diesel car owners, will be completely eliminated.

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