Soon, electric cars will probably be much more expensive in Norway
The government will present a new state budget on Thursday this week at 10:45. Now everyone expects the VAT exemption on electric cars to disappear and the cars to become more expensive.
The VAT exemption will probably be removed from 1 January 2023
The Norwegian Electric Car Association is in favor of removing the VAT exemption, but is afraid that the Government will not change the VAT exemption gradually.
This year, it seems that 80 percent of new car sales are electric cars – then the association believes that it makes sense to start with VAT, but that it must happen gradually.
Electric cars over NOK 600,000 are also expected for the highest VAT rate.
The goal is 100 percent electric car sales by 2025
The Electric Car Association is that the Government will not proceed cautiously, but instead remove all VAT on all cars. The fact that electric cars are more expensive to produce may mean, and is the fear of the association, that the goal of 100 percent new car sales of electric cars in 2025 will not be reached.
– One should either introduce a very low VAT rate on the entire purchase. We will propose to start at a maximum of 5 percent, and carefully consider how it goes, says Christina Bu in the Norwegian Electric Car Association to Nettavisen.