Norway is one of the northern European countries considered one of the paradises of electric cars, especially due to the high percentage of registrations. The reason, the absence of taxes, something that will change since the country studies a tax to tax the most luxurious electric vehicles.
In Norway, buying an electric car has become normal, like combustion cars in other countries of the Old Continent further south. The reason is that practically there are no taxes on the purchase of new zero-emission models, regardless of the category, the reason why the Tesla, among other Premium models, are the most among customers with a market share of 30%.
However, the Government of the country is studying a tax that will be levied on the most luxurious, despite their status as models that boast the most sustainable mobility possible. In 2020, the percentage of registered electricity companies reached a rate of 54.3%, and so far this year and until last September, this record has been broken reaching no less than 77.5%. Figures that say a lot about the bet and preference of the Norwegians.
Electric vehicles of more than 60,000 euros will pay a luxury VAT in Norway
In fact, the country is one of the first in Europe to set an end to combustion by 2025. By the middle of the decade, private and light commercial vehicles should all be electric. At present, lhe owners of this type of car benefit from tax exemptions; for example, they can circulate on the lanes used for public transport, they do not pay parking and do not pay tolls or ferry transport. Instead, combustion vehicles are penalized with a heavy luxury tax which, in the case of the most powerful models, pay rates of up to five digits.
Now, with a change in the Government, they are studying transferring this luxury tax to the most expensive electric vehicles. Of course, the standard has not been approved yet and already has significant detractors, but It is planned to bring VAT to 25% on electricity whose price is 600,000 Crowns -60,000 Euros- or exceeds this figure, so the most powerful models will pay a pinch more than generous in the coffers of the Scandinavian state.
For some, the new luxury tax represents an important step backwards, considering that it is not the time to introduce this fiscal novelty, while the promoters, led by Svein Roald Hansen, point out that “The more expensive the car, the higher It must be the tax, since it contributes additional money to the treasury and is justified for reasons of equity. In recent years we have received many new models, there is plenty to choose from for those who still want to buy a car as long as there is a VAT exemption». Of course, it is a very big stick for the big brands, which will see their sales reduced, although it is true that in the luxury market few buyers worry about the taxes they have to pay.