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| Abolishing Norway's tax exemptions for electric cars would slap thousands on the purchase price of a Tesla |
Norway, a world
leader of zero-emission vehicles, on Thursday proposed a "Tesla tax"
aimed at cutting a tax advantage granted to large electric cars in a heavily
criticised move.
Electric
cars, which have hitherto been exempted from heavy taxes imposed on other vehicles,
accounted for 20 percent of new registrations in the Nordic country since the
beginning of this year, an unprecedented market share in the world.
In a 2018
finance bill presented to the parliament on Thursday, the right-wing minority
government suggested removing a one-off tax exemption for new electric cars
weighing more than two tonnes.
The
proposal was immediately dubbed the "Tesla tax" because it primarily
affects the high-end models made by the American manufacturer. Buying a new
Tesla X would cost about 70,000 kroner (7,500 euros, $8,800) more.
Justifying
the proposed tax measures, Finance Minister Siv Jensen argued that these heavy
sedans exhaust the roads as much as gasoline and diesel cars, and that the
owners should therefore contribute.
The
proposal has sparked a heated debate.
"It's
a tax bomb," Norwegian Electric Vehicle Association Secretary General
Christina Bu told AFP.
"This
was unexpected by both the drivers and by the car 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.
She
underlined that Norway has set an ambitious target of ending the sales of new
cars with combustion engines as early as 2025.
The largest
oil producer in western Europe, Norway has introduced many incentives to
purchase electric cars.
In addition
to generous tax exemptions, which critics say allow the richest to buy Tesla
vehicles at a good price, Norway's electric car drivers benefit from free city
tolls, free parking and the possibility of travelling in the bus corridors.
The
government needs the support of other parties in the parliament to get its
budget approved.
Its traditional
centre-right allies have already spoken out against the "Tesla tax",
noting a 2015 agreement has granted tax advantages for electric cars until
2020.
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