Thursday, February 6, 2025

Minister refuses – will not make electric cars more expensive

Tax Minister Rasmus Stoklund (S) will not impose higher taxes on electric cars, even though an environmental and economic expert believes it is high time.

Electric cars have gained popularity on Danish roads in recent years, and sales have exceeded politicians' expectations.

Environmental economist Lars Gårn Hansen believes that the current tax rebate on electric cars should be removed by 2035, as we appear to be reaching the goal of one million electric cars in 2030 earlier than expected.

However, Tax Minister Rasmus Stoklund (S) rejects the proposal to raise the registration tax on electric cars.

He is pleased that sales of electric cars in 2024 have overtaken sales of gasoline and diesel cars, and he wants to maintain this positive development.

This is what DR writes.

"There are still only about 11 percent of the cars on Danish roads that are electric cars. I want to keep a hand in the development so that it is still an attractive and realistic choice to buy an electric car," says the Minister of Taxation.

Stoklund wants to maintain the current taxes on electric cars and will call the parties in the Danish Parliament to negotiations during the spring.

– It is not appropriate if taxes start to increase significantly, because then it will become much more expensive to buy an electric car.

"Then I think it will be unrealistic for many families who will instead look towards petrol and diesel cars," says the Minister of Taxation.

Neither the Conservatives, the Radicals nor the Danish People's Party support the proposal to raise taxes on electric cars.

The Radicals' tax spokesperson, Samira Nawa, also does not believe it is time to raise taxes.

– I don't think it's time to raise taxes. On the contrary, we should maintain the low tax.

The Conservatives agree. And the party points out that sales of electric cars will come to a standstill, as is the case in Sweden, if higher taxes are imposed on electric cars. The Swedes have removed support for new electric cars altogether. The German government did the same in December 2023.

At the Danish People's Party, tax spokesman Peter Kofod is against raising taxes in general, as it could limit Danes' ability to own cars, especially in the outlying areas.

Unless otherwise agreed, the registration tax on electric cars will begin to increase gradually from January 1 next year and reach the same level as for other cars in 2035.

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