The registration tax on electric cars could disappear altogether, while road pricing and a possible "Tesla tax" that penalizes drivers are being considered.
Electric cars now account for over 50 percent of new cars sold in Denmark. The government is therefore considering significantly changing the registration tax. A complete abolition of the tax on electric cars is a real possibility, according to sources within the multi-party government.
This is what Ekstra Bladet writes.
Whether the same is the case for cars with combustion engines, or whether this is another distribution that only applies to electric cars, is uncertain.
The high Danish registration tax has made cars very expensive in Denmark for more than 100 years. However, successive governments have given large discounts on the registration tax for electric cars.
Most significantly in 2015, when the Liberal Alliance got a reduction from 180 to 150 percent through.
The state's revenue from registration tax is falling as a result of this development. This now provides a historic opportunity to fundamentally change car taxation.
Internal discussions in the government point to possible major changes. Some sources close to the negotiations say, according to Ekstra Bladet, that the tax will be abolished completely. Others are more cautious and talk about a restructuring of the system.
Politicians may well have time to present the tax abolition – or restructuring – before the Danish Parliament goes on summer break. This will happen in June.
The future of car taxation: Road pricing and Tesla tax
Road pricing is being mentioned as a possible replacement for registration tax. Road pricing is a tax based on how much you drive, not on the price of the car when you buy it.
Such a system also means that foreign drivers will have to pay to drive on foreign roads. In fact, the system is currently being tested. Read more about it here .
Ekstra Bladet writes that the government believes that small electric cars are too expensive. At the same time, the government wants to punish people who buy just slightly more expensive electric cars. That is why there is talk of a surcharge. According to the media, a so-called 'Tesla tax'.
Gradual phasing-in and cancelled tax increases
However, major changes in car taxes are likely to occur gradually. Sudden and large price drops on new cars could result in significant losses for current car owners. This will be avoided.
It is also important to avoid car sales suddenly coming to a complete standstill. This could happen if car buyers start expecting big price drops just around the corner.
However, a more concrete change appears to be in place. The planned increases in the registration tax on electric cars are expected to be cancelled. This applies to the increases that were due to come into effect in the coming years.
A political agreement from 2020 otherwise called for annual increases. The registration tax on electric cars was to increase by eight and four percent each year, respectively. And in 2035, there was to be no tax discount at all on electric cars.
Tax Minister Rasmus Stoklund (S) has already signaled a cancellation earlier this year.
– 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," the minister told DR earlier this year.
