Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs

Cornelia Mascio
Ottobre 13, 2017

The move has surprised many in the automobile industry as majority of governments across the world have announced or are planning to offer tax subsidies for electric vehicles.

Norwegian media dubbed the tax on EVs weighing more than 2 tons the "Tesla tax" and have estimated that if approved, the abolishment of the tax break would raise the price of a Tesla Model X by US$8,850 (70,000 Norwegian crowns). The proposal "implies that only heavy electric cars, with a weight in excess of two tonnes, will be subject to motor vehicle registration tax", the budget draft says. Electric cars account for almost 20 percent of the new vehicles registered in Norway.

The government's "Tesla tax" proposal is seen by critics as undermining Norway's status as a leader in clean vehicles adoption and penetration. If the new legislation passes without any major changes, Tesla Model X could cost almost Euro 7,500 more.

"This was unexpected by both the drivers and by the vehicle industry and it sends a bad signal to the Norwegians and the world" for which the nation is often a model in this matter, Bu added.

In addition to generous tax exemptions, which critics say allow the richest to buy Tesla vehicles at a good price, Norway's electric auto drivers benefit from free city tolls, free parking and the possibility of travelling in the bus corridors.

As automobile companies are still developing technologies for electric vehicles, they are spending a lot of money on research and development.

Norway's electric vehicle drivers benefit from free city tolls, free parking and the possibility of traveling in the bus corridors. Still, owners of Teslas and other electric cars would still benefit heavily compared to other vehicle owners.

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