According to foreign media reports, the Danish Parliament will discuss the possibility of amending the current tax law applicable to electric vehicles in Denmark.
On Monday, local time, a panel of experts made a number of recommendations to the Danish government on how to reduce the price of electric vehicles, including reducing mandatory taxes such as registration of electric vehicles, increasing fuel prices for internal combustion engines, and imposing higher road taxes on vehicles using gasoline as fuel.
Foreign media reported that Denmark relies heavily on $7.95 billion a year in car and road taxes to fund its welfare system.
It is reported that the Danish government collects about $8 billion a year from car sales. For example, the long-range all wheel drive model 3 sells for nearly $100000 in the Danish market, with more than 20% of the cost coming from taxes.
There is no doubt that Denmark's electric vehicle tax has prevented some citizens from buying green cars, because when the tax is levied, the price of electric vehicles will soar.
On Monday local time, a Danish government committee said a quick switch to electric vehicles to meet Denmark's ambitious climate goals would create a huge financial gap. Denmark aims to reduce carbon emissions by 70% by 2030.
In March, the Danish climate change Council, an independent consultant to the Danish government, said that in order to achieve the target, the number of electric vehicles should be increased from less than 20000 at present to at least one million by 2030. But for now, it's a long way to go.
According to the Danish Association of Automobile Importers, although the sales of electric vehicles have increased, only less than 1% of the 2.7 million registered vehicles in Denmark are registered.