OSLO: The Country Caller reported a great news for Norwegian consumers who are considering to buy an electric vehicle (EV) of Tesla Motors Inc (NASDAQ:TSLA), where the lawmakers extended the exception of 25% value added tax (EV) for battery-powered car. We also highlighted that the decision faced heavy political opposition because it is mainly a subsidy for affluent people to buy Tesla cars.
A Norwegian major publication, Dagens Næringsliv (DN) reported that an official of the Labour Party branded Tesla cars as “fun toys” for rich men, who have evaded estimated taxes of NOK 2.3 billion ($271 million) over the last few years. If the social-democratic party is successful convicting lawmakers to lower incentives, the price of Tesla cars may increase by as much as NOK 200,000 ($23,600).
The Labour Party Spokeswoman, Marianne Marthinsen, said that it is about time that the tax incentives on luxury EVs like the Model S and Model X should be reduced, as EV current buyers have access to a long list of benefits. Ms. Marthinsen told DN: “The most expensive Teslas should not be so strongly subsidized any longer.”
While accepting that the incentives have powered EV sales, she highlighted that there are more affordable EVs coming into the market, implying that she doesn’t see the point of having incentives for luxury-end EVs.
They do not require paying the nation’s one-time, high fee on vehicles that actually doubles a vehicle’s price, as well as VAT on the vehicle, and its equipment and roads tolls and parking and ferry fees. Moreover, the registration fees on an EV and their taxes on company vehicles are much less than that of a gas-guzzler. EV buyers also have access to express lanes, which are only for public transportation on highways.
These inventive on EV were introduced years ago to promote battery-powered vehicles to reduce carbon emissions in the country. Therefore, Norway is the one of the leading countries in terms of electrification of the transport industry. Additionally, it is one of the few countries to stop the sales of new gasoline-powered cars.
Norway is currently the top European market for Tesla and the Model S has become the best-selling vehicles in the country. In the third quarter, its newly launched all-electric SUV, Model X, was the second-best selling vehicles in Norway, as well as the best-selling EV in September.
