Tax Minister Rasmus Stoklund (S) now acknowledges that it is an advantage to remove the registration tax on electric cars. The question is whether it will happen.
Tax Minister Rasmus Stoklund acknowledges that there may be advantages associated with permanently removing the registration tax on electric cars.
The statement was made after a visit to Andersen Biler in Hillerod on Monday, March 31st.
The visit was arranged by DI Bilbranchen and aimed to give the minister and member of parliament Fie Hækkerup (S) insight into the administrative aspects of the current registration tax.
This is written by DI Bilbranchen in a press release .
The organization took the opportunity to draw the minister's attention to the car taxes ahead of a political evaluation in the area.
Removing the registration tax is just a consideration
The organization proposes a settlement with the existing registration tax specifically for electric cars. The proposal involves a permanent abolition of the tax on electric cars and instead an increase in the ongoing taxation on car use.
The background to the proposal is partly a desire to promote green transition and new technology, and partly the administrative burdens associated with the current system.
Industry Director Thomas Moller Sorensen from DI Bilbranchen elaborates on this point of view:
– For years, we have argued that the registration tax penalizes new technology to the detriment of green transition and traffic safety.
– In addition, it is extremely difficult to administer for both the state and the business community, as the correct tax for each individual car must be calculated, documented and administered.
– At DI, we estimate that the automotive industry spends time and resources equivalent to DKK 300 million each year on administering the tax.
He points out that while there has long been political attention to the challenges of the registration tax, the state's revenue from it has historically been a barrier to change. However, that situation is changing.
– The high sales of electric cars, which have no or limited registration tax, have significantly reduced the state's revenue from registration tax.
– We therefore now have a unique opportunity to establish efficient and intelligent car taxation once and for all.
– In DI, we propose to permanently remove the registration tax on electric cars and instead cap the ongoing taxation of cars, says Thomas Moller Sorensen.
At Andersen Biler, which has over 400 employees spread across 14 locations, you experience the consequences of the complexity of the tax directly.
– The registration tax is a patchwork of patchwork solutions that no one can figure out. I would think that we have two or three full-time positions in total that do nothing more than document and administer that we pay the correct tax.
– In addition, there are costs for necessary IT systems and consultants. We could instead use all those resources to create growth and jobs, explains Martin Frykmann:
After the visit and the presentation of DI Bilbranchen's proposal, Tax Minister Rasmus Stoklund stated:
– It is always good to get out into reality and see how laws and regulations in practice affect the business community, in this case especially the automotive industry.
– We in the government have taken note of the proposal from DI and not least the benefits of permanently removing the registration tax on electric cars. This will be included in our further considerations.
