The Norwegian Department of Transport Economics (TØI) published a report in February entitled "The Climate Impact of Car Taxes". This report states that VAT on electric cars will cut sales in half. At the same time, it will increase the average CO2 emissions of new cars by around 60 percent.
It is a very bad idea to rush to introduce VAT on electric cars
– The report shows how extremely effective the climate policy is the VAT exemption for electric cars. Hastily introducing VAT on electric cars is a terribly bad idea. This will result in a sharp increase in greenhouse gas emissions and make it impossible to achieve Norway's climate goals, says Christina Bu, Secretary General Norwegian Automobile Association Electrical.
VAT added up to the part of the price in excess of CZK 600
Even the introduction of the upper VAT tax above 600 kroner will lead to a decline in electric car sales and an increase in emissions. If you are content to add VAT to the portion of the price that is more than SEK 600. This report shows that electric car sales will decline by approximately 000 to 3 percent and CO4 emissions will increase by approximately 2 percent.
This is in direct conflict with both climate goals and political wishes.
The Storting is now considering a climate report and is looking for further cuts to meet Norway's climate goals.
- Now parliament must have "ice in the stomach" and wait with careful introduction of VAT on electric cars. Until it is certain that this will not destroy the climate target. The goal is to sell 100% electric cars in 2025.
You have to consider how to carefully apply VAT on electric cars
The council of the Norwegian Electric Car Association is like this. First, the environmental profile of the one-off tax on polluting cars must be strengthened. Close the tax gap that makes electric cars less competitive in leasing before considering how to carefully apply VAT on electric cars.
- It is important that politicians do not destroy the success of Norwegian electric cars by hastily introducing a tax on electric cars. This is Christina Bu, secretary general of the Norwegian Electric Car Association.
