Friday, May 24, 2024

New tax is on its way to 694,000 car owners in Denmark

On 1 January this year, the price of fuel went up a huge notch due to a 15-year-old tax agreement. Now there is more on the way.

A 15-year-old agreement at Christiansborg made it significantly more expensive to fill up with petrol and diesel in Denmark on 1 January 2024.

But in the case of diesel drivers, the treasury is heading even further into the pocket. The total of 694,000 owners of diesel cars in Denmark must pay even more tax from 1 January 2025.

Specifically, the tax on diesel will increase by 50 ore per liter from that date. On the other hand, diesel car owners get away with the so-called equalization tax a little cheaper, which is paid because diesel is less taxed than petrol.

Or to put it in another way; was less taxed. However, the relaxation of the equalization tax is only temporary. Already after 2 years with the new taxes – i.e. 1 January 2027 – the equalization tax will rise again.

READ ALSO: Nordjyde's brand new Fisker has lost at least DKK 200,000 in value

According to Climate and Energy Minister Lars Aagaard (M), it is 'green action that works' when motorists are to be punished in this way.

But the return of the equalization tax is not the only thing that will trouble the economy of diesel drivers in 2027. Here, the EU will introduce a quota system for fuel. And Denmark, as a member state, just has to adapt to the new rule.

The quota system is expected to make petrol 1.17 kroner more expensive on top of the Danish government's own taxes, while the price of diesel per liter will increase by a further 1.09 kroner.

The bill, which motorists must pay from 1 January 2025, was adopted with a majority of votes from the SVM government, SF, De Radikale, Enhedslisten and the Conservative People's Party.

Read more news from and about the automotive industry right here!

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