Wednesday, December 4, 2024

Norway will make it more expensive to own an electric car

As part of the Norwegian state's budget for 2025, the government will raise the ownership tax that owners of electric cars pay. Norway's answer to FDM, NAF, thinks it is wrong.

The Norwegian government has plans to make it more expensive to own an electric car. In the proposal for the state budget for 2025, i.e. Norway's Finance Act, it appears that the government will raise the tax on electric cars – more precisely the traffic insurance tax.

This is despite an electoral ceiling on lowering taxes on petrol and diesel. To compensate for the increased taxes on electric cars, the government proposes to lower the road tax and traffic insurance tax on petrol and diesel cars

At the same time, the government will raise the total taxes on petrol and diesel by 0.07 ore per litres. The Norwegian Automobile Association (NAF) is critical of the government's proposal.

– NAF believes it is incomprehensible that in next year's budget the government will raise the total fuel taxes by 0.07 ore per liter and raise the tax on owning an electric car," says Ingunn Handagard, press manager at NAF, in a press release .

NAF points out that the total taxes on petrol have increased by 1 kroner and 17 ore. O the taxes on diesel have increased by 81 ore since the government took office in 2021.

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– Year after year, the increases in petrol and diesel taxes have been small, but over time it builds up. We have not yet seen the government keep the ceiling from the Hurdal platform to lower the taxes on petrol and diesel," says Handagard.

NAF believes that it is crucial to maintain the incentives to choose electric cars in order to ensure a more climate-friendly car fleet.

– Motorists do not need more toll increases. The most important measure to ensure the transition to a more climate-friendly car fleet is that it still pays to have an electric car, says Handagard.

The government's proposal has created debate in Norway, where electric cars already have a high market share. In fact, new petrol and diesel have been completely eradicated in several places in the country. Read more about it here .

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