Norway is considering abolishing or lessening the privileges of EV owners in Norway.
The Norwegian Ministry of Transport is considering removing or reducing privileges for electric vehicles. According to its statements, the government wants to see a turning point for transportation than a 1:1 swap-out of combustion engines with electric cars.– According to a report by electrek,
Norway’s Transport Minister Jon-Ivar Nygård stated that the reasons for the reconsideration were the lower revenues and a delay in the transport turnaround. He said, “It’s great that people use electric cars. But it’s not good if people get into their cars and drive to busy urban areas instead of walking, cycling or using public transport,”. The final decision regarding the matter is still pending.
In the current legal situation, the tax on electric cars has been about 50% less than that for gas cars. The sale of an electric vehicle does not include a value-added tax of 25%. In addition, there are reduced toll and parking charges in some areas. Unfortunately, subsidies for hybrid cars have already been discontinued.
Total registrations in Norway have declined by 15% this year. Electric cars were up 28.9% compared to the same period last year. In April, 74.1% of all new electric car registrations were purely electric and in March, 86.1%.
As a result, electric cars are beginning to dominate Norway. As reported by NRK, there is a lack of money for infrastructure or public transport investments due to declining revenues as the share of electric cars increases. “We have seen a trend, especially during the pandemic, that car traffic has returned,” Nygård told NRK.
The Norwegian electric vehicle association Norsk Elbilforening defends electric vehicle privileges against the abolition or reduction of these privileges. Christina Bu, head of the said association, said that there are still 80% of cars in Norway fueled by gasoline and diesel, pointing at the importance of incentives to buy electric vehicles as a significant motivator.