Norway seeks ‘Tesla tax’ on electric cars

OSLO: Norway, a world leader of zero-emission vehicles, proposed a ‘Tesla tax’ aimed at cutting a tax advantage granted to large electric cars in a heavily criticised move.

Electric cars, which have hitherto been exempted from heavy taxes imposed on other vehicles, accounted for 20 per cent of new registrations in the Nordic country since the beginning of this year, an unprecedented market share in the world.

In a 2018 finance bill presented to the parliament on Thursday, the right-wing minority government suggested removing a one-off tax exemption for new electric cars weighing more than two tonnes.

The proposal was immediately dubbed the ‘Tesla tax’ because it primarily affects the high-end models made by the American manufacturer. Buying a new Tesla X would cost about 70,000 kroner (7,500 euros, US$8,800) more.

Justifying the proposed tax measures, Finance Minister Siv Jensen argued that these heavy sedans exhaust the roads as much as gasoline and diesel cars, and that the owners should therefore contribute.

The proposal has sparked a heated debate. — AFP