Norway planning 'Tesla Tax' on Electric Cars

Lester Mason
October 13, 2017

The proposal was immediately dubbed the "Tesla tax" because it primarily affects the high-end models made by the American manufacturer.

Critics say that electric vehicles are only popular because Norway gives enormous subsidies, which make the most expensive Tesla models about $50,000 cheaper.

The proposed tax could hit vehicles like Tesla that weigh more than two tons. China is the biggest market and it wants to increase the output of electric vehicles to reduce pollution.

Thanks to the "greencentives", Norway has the highest per-capita number of electric cars in the world, with 215.6 EVs per 10,000 inhabitants, according to the IEA and the Financial Times. Buying a new Tesla X would cost about 70,000 kroner (7,500 euros, $8,800) more.

"This was unexpected by both the drivers and by the auto industry and it sends a bad signal to the Norwegians and the world" for which the nation is often a model in this matter, Bu added.

As of July a year ago, Norway had 21.5 registered plug-in cars per 1,000 people, more than 14 times more than the United States, then the world's largest auto market.

Over the years, Norway has offered enticing subsides and other perks to encourage people to buy electric cars, such as no city tolls, free parking, free charging, and permission to drive in bus lanes.

Andreas Halse, the environmental spokesman for the opposition Labour party, said that while electric vehicles produce no emissions, they also damage roads due to their weight.

In its 2018 budget proposal unveiled today, Norway's right-wing minority government has included a proposal to change an exemption from the motor vehicle registration tax.

She underlined that Norway has set an ambitious target of ending the sales of new cars with combustion engines as early as 2025. Even if a "Tesla tax" were to come through, electric vehicles will still be competitively priced compared to countries like Denmark and Sweden.

Other reports by Iphone Fresh

Discuss This Article