While life may soon start to feel a little less sweet for EV owners in Norway, the country is eyeing its next strategic move toward an even greener future, and that means fewer private cars (even electric varieties) clogging the roads in favor of walking, cycling, and taking the bus.
Norway is leading the world in electric car adoption, with more than 65% of new passenger cars sold in the country in 2021 being electric – and generous tax incentives and perks like free parking have played no small role in that. But the government just announced a new plan to roll back VAT exemptions, especially for higher-end vehicles, with an eye toward potentially slashing more benefits.
First up is the VAT exemption for EVs priced at more than 500,000 kroner (about $51,700) as of January 1, 2023. The new VAT scheme will be dynamic in that the more expensive the electric car, the higher the VAT fee it incurs from next year.
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