Norway evaluates the stop to VAT exemption for & quot; Premium & quot; electricity

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We recently talked about how the Government of Norway was considering reducing the subsidies for purchasing of electric cars. Apparently, there may actually be some news. Until now, the purchase of electric was facilitated through a series of advantages including the exemption of VAT. Bonuses that are starting to weigh on the country's coffers.

INCREASE IN VAT BASED ON THE PRICE

By presenting the budget for 2023, the Government has proposed a new scheme of tax incentives. In particular, from 1 January 2023 , if there are no problems, we will return; to pay VAT on battery-powered cars, even if not all. In fact, the VAT will be paid; on all models that will cost more; of 500,000 crowns which are about 49,000 euros. In reality, the Government has decided to adopt a & quot; progressive tariff & quot ;. What does it mean? Pi & ugrave; will cost and greater will be; the VAT fee that buyers will have to pay. Finance Minister Trygve Slagsvold Vedum explains:

Today, you can buy long-range electric cars in all price ranges. We believe, therefore, that it is right that those who choose to buy the best cars; expensive you also pay a little of VAT to the community.

But how much will you pay? more & ugrave ;? Apparently, it seems that it will not arrive. never to fully pay the VAT of the country that is of 25%. According to the Norwegian newspaper The Local it has done quite a bit of accounts, who will buy & agrave; a car worth over 600,000 crowns (about 58,100 euros), will have to; pay extra 25,000 crowns, equivalent to 4% VAT. On the other hand, whoever buys a car worth more than one million crowns (98 thousand euros), will have to; to pay 12.5% ​​VAT.

This proposal by the Norwegian Government is not; been well received by the Norwegian association for electric cars which already it had said it was against the idea of ​​the Government to review the concessions for the purchase of electric cars which could penalize the growth of this market.

In any case, until the end of the ; the current concessions will remain unchanged. We remind you that in addition to the VAT exemption, those who buy an electric car get other advantages including a reduction in the purchase taxes of the car, the exemption from paying parking and more. . Advantages that have precise costs for the country's coffers. The funds could be used for new infrastructural works.

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