Denmark will postpone a planned tax increase on electric cars as part of a budget deal agreed by the government and most opposition parties, helping boost EV sales, Bloomberg reported.

The budget will allocate DKK200m (US$30m) over 2024 and 2025 to keep in place the current tax free allowance on electric cars, according to a statement cited by Bloomberg. That delays a gradual phase out of tax discounts for zero emission vehicles until the end of 2030.

According to the report, tax benefits have helped support rising electric car sales in Denmark though still clearly trailing neighbouring, EV-friendly Norway.

A third of new passenger cars registered in the country were fully electric in the last year, up from 19% a year ago, Bloomberg noted, citing Statistics Denmark data.

In a statement, the Danish Car Importers Association estimated this share would pass 50% in 2024 in light of the new budget, Bloomberg said. There now were over 177,000 electric vehicles in Denmark, accounting for 6.3% of all passenger cars.

According to Bloomberg, the government said the fiscal plan for 2024, agreed by 11 of the 12 parties in parliament, and also including additional spending on welfare and green investments, would have a neutral impact on the economy.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData