Denmark to extend tax breaks for electric cars

Publication date: 29 May 2009

The Danish government has bowed to pressure and agreed to extend a reduced vehicle registration tax for electric cars until 2015, according to media reports. The government had previously agreed to apply the tax break until 2012.

Following protests from green groups and industry – notably Dong Energy – energy minister Connie Hedegaard said until 2015 electric cars "will be met with a significantly lower registration tax to the extent that is necessary to ensure the distribution of electric cars".

Dong Energy CEO Anders Eldrup described the about-face as "a very good signal". The energy company has called for an extension until at least 2020. The decision to reduce the registration tax for electric cars until 2012 was agreed last year as part of a cross-party deal on energy policy.

Source: ENDS

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DONG satisfied with electric car tax relief

The government has said it likely will extend the cheaper vehicle registration tax for electric cars until 2015

DONG Energy, which plans to introduce a major electric car initiative to Denmark, is pleased at the announcement that the government has changed its stance on registration taxes for electric vehicles.

As part of the government’s green energy agreement last year, it was decided that electric vehicles would not be subject to normal vehicle registration tax of 180 percent until 2012. But that exemption may be extended by the government until 2015, according to Connie Hedegaard, the climate and energy minister.

DONG Energy, of which 72 percent is state-owned, called for an extension to the registration free period until at least 2020. The Fredericia-based company, in cooperation with Project Better Place, plans to launch 500,000 electric cars in Denmark within the next decade.

DONG’s chief executive Anders Eldrup has previously been very vocal about the extension period being closely linked with the Danish company’s investment in the electric car market, which it believes will be worth billions.

It seems that the concerns of DONG have been taken seriously, as the government’s account of its energy policies for 2009 contains important changes. The report has just been presented to parliament.

‘In the 2012 – 2015 period, the government has indicated that electric cars will be met with a significantly lower registration tax to the extent that is necessary to ensure the distribution of electric cars,’ said Hedegaard.

It is not yet known exactly what financial incentives will be offered for the electric vehicles, but Eldrup is pleased with the news, even if it isn’t an extension until 2020.

‘I believe that we are getting a very good signal. Of course we want as big a registration relief for electric cars for as long a period as possible,’ said Eldrup.

Source: The Copenhagen Post Online