Denmark delays plans to increase taxes on electric cars According to foreign media reports, the Danish government, in a new budget agreement with the majority of opposition parties, has decided to postpone plans to increase taxes on electric cars. This move is expected to further boost sales of electric cars in Denmark.
According to a statement released on November 27, the new budget will provide a tax exemption of 200 million Danish kroner for consumers purchasing electric cars in 2024 and 2025 to maintain the current tax-free policy. This measure will delay the gradual phasing out of tax exemptions for zero-emission vehicles until 2030. This policy is part of the Danish government’s efforts to promote green travel and boost the sales of electric cars. While Denmark is one of the leading countries in the EU in terms of the adoption of electric cars, it still lags behind neighboring Norway. The government hopes that this move will change the current situation. According to the Danish Statistics Bureau, one-third of the new cars registered in the country last year were pure electric cars, a significant increase from the previous year’s 19%. The Danish Car Importers Association stated in a release, “Based on the new budget, we expect the market share of electric cars to exceed 50% in 2024.” Currently, the total number of electric cars in Denmark has exceeded 177,000, accounting for 6.3% of all passenger cars. The government has stated that the 2024 fiscal plan will include additional expenditures for welfare and green investments, and 11 out of 12 parties in parliament have agreed to the plan. Previously, on December 4, 2020, the Danish parliament reached an agreement to have at least 775,000 electric or hybrid cars on Danish roads by 2030. Delaying the tax increase is the latest move by Denmark to achieve its ambitious goal of reducing greenhouse gas emissions by 70% by 2030.