Norway axes proposed Tesla tax

By Graeme Roberts | 28 November 2017

Norway has abandoned plans for a proposed, so called Tesla tax which would have cut a tax rebate granted to heavy electric cars.

AFP reported plans for the tax, which was to have been imposed in 2018, were halted after a budget compromise was reached between the right wing government and its centre right allies.

"It's a happy day," Norwegian Electric Vehicle Association secretary general Christina Bu said.

As we detailed in a feature article recently, Norway, ironically a large oil and gas producer, has introduced numerous incentives to encourage the purchase of electric cars. Buyers pay almost no tax, making the sale price very competitive.

There are also numerous ownership benefits such as dedicated traffic lanes and cheap or free parking.

Sales of zero emission vehicles account for more than a fifth of new car registrations, a market share unique to Norway, AFP noted.

The government had proposed to abolish one of the tax exemptions granted to electric cars weighing more than two tonnes. This was immediately dubbed the Tesla tax because it would primarily have affected top models, raising the price of a new X by about 70,000 kroner (EUR7,500, US$8,800).

The Liberal party, a key ally of the minority government, was opposed to the tax, arguing that a 2015 accord had called for the tax exemptions to remain in place until 2020, AFP said.