Denmark To Phase Out Electric Car Tax Breaks – Price Of Tesla Model S To Almost Triple

OCT 15 2015 BY MARK KANE 71

LEGO Tesla

LEGO Tesla

Denmark has a new three-month old government, who intends to reverse tax breaks for electric cars.

According to the new plan, tax breaks for EVs could disappear completely by 2020, so there isn’t much time, especially since the breaks/additional taxes will likely be implemented step-by-step.

In Denmark, taxes on conventional cars are very high, higher than the price of the whole car.

180% tax instead of 0% would nearly triple the price of EVs. And the more expensive the car is, the higher the tax will be.

Dr.Dk recently expressed the impact on prices across the Model S lineup over the next few years:

Tesla Model S 70D

  • Prices today 589.000 kroner ($90,641 USD)
  • Price after 2016 with new tax 739.000 kroner ($113,700)
  • 2017: 844.500 kroner
  • 2018: 1.001.100 kroner
  • 2019: 1.129.500 kroner
  • 2020: 1.141.500 kroner ($175.667 USD)

Tesla S P85D

  • Prices today 875,000 kroner ($134.650 USD)
  • Price in 2016 with new tax 1.522.400.000 kroner ($234,299)
  • 2017: 1.585.400 kroner
  • 2018: 1.702.300 kroner
  • 2019: 1.812.900 kroner
  • 2020: 1.807.100 kroner ($278,000)

At such a price, many potential Tesla buyers will only be able to afford a LEGO Tesla, it seems. All other EVs of course will be hit hard too.

Funny thing is that the announcement was issued after Tesla’s Elon Musk visited in Denmark. The fear now is that diesels will become more attractive than EVs, especially since the country is considering canceling a pollution levy on diesel cars.

Someone is awry in Denmark:

“The country will also make diesel vehicles more attractive by canceling a pollution levy, according to provisions in the 2016 budget draft. The government is defending the measures by saying they will help businesses save money and create more jobs.”

“As the world looks on in disbelief at Volkswagen’s emissions scandal, Denmark is pushing through policies that will undo the previous administration’s efforts to steer consumers toward environmentally friendly vehicles. One involves extending Denmark’s 180 percent levy to all cars, regardless of their emission levels; another concerns a special tax on Nitrogen-Oxide emissions, which are generated from burning fossil fuels and are more abundant in diesel than gasoline cars.”

“According to other provisions contained in the budget draft, the Liberal government also plans to drop the so-called NOx tax, which was introduced by the previous administration to reduce pollution. The move will save businesses an estimated 240 million kroner in 2016, according to the Tax Ministry.”

The official reason behind increasing taxes on EVs is finding more money for government spending.

According to EV Sales Blog, some 2,000 EVs were sold in Denmark in the first eight months of this year, including 725 Tesla Model S electric cars.

Source: Bloomberg, DR.DK, Hat tip to Jan R!

Categories: Tesla

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71 Comments on "Denmark To Phase Out Electric Car Tax Breaks – Price Of Tesla Model S To Almost Triple"

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Too Bad.
Most effective way to reduce pollution, take advantage of green energy, and make cities nicer, which all lead to more commerce in down town areas.

Nope. Most effective way is to promote public transport and make the roads safer for bicyclists. And plan cities around short commute, like putting offices and residential areas in close proximity. Driving 20-40 miles each way to work, as in US, is utter stupidity.

Time to cut off the money spigots for Elon’s lavish lifestyle. He needs to go do some work at the factory instead of wasting time on TV shows,appearing as a cartoon character 🙂

So your definition of not putting a 180% tax on a Model S is “a money spigot”? Really? That’s an insane tax level any way you slice it.

I’ll give you the point that 20 to 40 mile commutes are stupid with any technology, but rebuilding US metro areas around shorter, saner commutes is not going to happen any time soon, so EVs are a logical step.

Its Scandinavian country.

For them its a) normal b) workable.

Its like Scandinavian showed big middle finger to Marks. They have democracy AND capitalism AND efficient socialism.

No need for bloody totalitarianism.

Promoting public transport AND EVs are not mutually exclusive.

And your rant about Elon is hilarious. Do you work 100 hour work weeks?

A lazy scrub, is what you are.

I agree that transporting people with bikes and public transport is even better than with cars. But why not tax the actual driving and pollution rather than the car. Why should an electric car be taxed higher than a rolex, luxury clothing, beer, air tickets etc.? If you had toll on roads and tax on gas, you wouldn’t have to have any more tax on cars than on any other item. I would argue that buying a tesla is one of the few things most people could spend money on that pushes the world in the right direction.

“…And plan cities around short commute…”

Because Denmark and so many other countries are tearing down old cities to build new ones.

Yeah, Dean Kamin thought that too when he introduced the Segway.

See how well that worked out?

Really?

Denmark’s cities are all older than 300 years, and I think they *might* have been taking short commutes into their consideration at that period in time.

This will make Denmark the only nation in the world to tax EVs – with a vengeance!

No, it won’t. A Prius costs $107,000 in Argentina. There isn’t a single Tesla store anywhere in South America.

or New Zealand

I believe that is due to trade tarifs, not tax.

And who wants to be Argentina?

this is no vengeance, this is simply applying the same tax for all cars.

But interesting that all cars not just EV are taxed that high

It’s very common in much of the Old World. Israel too has fairly high vehicle tax, and used to have even higher.

Evaluating vehicle taxation has to do with what the $$ is used for. If it’s used to maintain transportation infrastructure (including transit) and mitigate pollution and its effect, then why not?

If it’s just dumped into the general fund and gets used by the govt. as it sees fit (the case in Israel, which means used for wars and other ill-begotten adventures) – then it’s just robbery of the middle class.

interesting Assaf.
I wonder how Germany allocates the tax money.

…we use it to for our peoples pension.

+1

No government needs a 180% tax on cars to build and/or maintain roads.

The original tax was a punitive tax by a left-wing government trying to force the Danish pubic to walk, bicycle or use public transportation.

Imposing this car tax on BEVs is revenge by a right-wing government on cars purchased by progressive environmentally aware Danes. Their voters don’t buy BEVs.

It is just that simple and has nothing to do with budgets,revenues or expenses.

“The original tax was a punitive tax by a left-wing government trying to force the Danish pubic to walk, bicycle or use public transportation.”

This seems like a good objective. Cut pollution as well as cut congestion. Use the money to improve public transport and make roads safer for bicyclists. If US could think like that, it would be a 1st world country.

Elon should love this approach. Instead, he was threatening the Danish government. I don’t really understand why.

that sounds great – except you ignore that they are also removing the tax on all those nice poisonous diesels, so they obvious care nothing for all those they will be killing from the pollution.

While I would love to have EVs in cities I’d rather have a stinking public transit and no other motorized vehicles at all than having both ICEs and EV on the road.
It would still be a lot more quieter.

But, then again taxation fixes nothing per se. It will keep people more chained and there are some benefits to go along.

The Troll See Through always ignores the real facts in order to pollute our otherwise constructive conversations with his anti-tesla FUD stupidity.

Elon was actually speaking very carefully when interviewed in Denmark.

‘“The original tax was a punitive tax by a left-wing government trying to force the Danish pubic to walk, bicycle or use public transportation.”

This seems like a good objective. Cut pollution as well as cut congestion. Use the money to improve public transport and make roads safer for bicyclists. If US could think like that, it would be a 1st world country.’

Yeah, unless you are old or young or injured or sick or don’t like being soaked in rain or pummeled by hail or snow.

I love how health Europeans want the strongest to survive and the rest to die off and leave their money. How did that work out the last time?

ROTFL.

What left/right have to do with buying fastest mass produced sedan out there?

Why anyone able to send such ammount not wanted to buy one.

I mean its fastest.

Drag race fastest like.

Are You insane to claim that left/right have anything to do with it? 😉

I seem to recall that by the first oil shock in 1970, their cities were already choked with cars. If you think traffic in New York is bad, you’ve never seen what happens when people try getting around in medieval towns with medieval roads with big German sedans. Widen the roads? Over the landowners’ dead bodies, and the land still gets inherited after that too.

Then the minor problem of Denmark getting all its oil from overseas cropped up. Those oil shocks in the 1970s were absolutely disastrous.

The public was largely already anti-car by that point in time, and it quickly came to a head. That’s why they got into wind power in a big way at that point in time, and why they have 180% tax on cars. This isn’t a recent thing in Denmark, it’s ancient history now.

Than they should have a Carbon Tax to affect the negative externalities of using carbon.

Average tax in Europe on all consumer products is 20%. Several countries like Denmark, Norway, Greece, Holland have additional luxury tax on cars between 40 – 180%. This based on the Net import price before any tax. These taxes are used to cover infrastructure but also the high social governmental coverage for all citizens.

I believe the taxes on cars in Norway and Denmark are so high(up to 180%) because both countries have no car industry . For example Sweden does not have such luxury taxes on cars(if I’m informed correctly) because in Sweden there is Volvo (and was Saab). The governments in Denmark and Norway want stop their citizens to send to much money abroad.

So, turn out, governments in Europe are just as self-interested, incompetent, or corrupt (or all three) as here in the US. Weird.

Not necessarily, but Denmark’s newly-elected right-leaning government recently replaced its left-leaning government. So Denmark’s new government is more similar to that of the U.S. than was the previous government.

When you’re worth 80 BILLION Dollars, you can walk across the Globe and DESTROY carbon competition.

– Koch Bros.

Look for the funding, i’m guessing you’ll find an American AssHead.

I’m pretty sure that this is going on here and that the Trojan horse here is Bjorn Lomborg again, AKA “The Danish Denier”.

In many ways the perfect Trojan Horse for the Koch Brothers. He’s young, gay, hell even a vegetarian and he comes from a socialist country!

Unfortunately for Bjorn’s pseudo-science he was recently outed as basically being on the Koch Brothers’ payroll.

See here:
http://www.desmogblog.com/2014/06/25/millions-behind-bjorn-lomborg-copenhagen-consensus-center

Yes, ‘something is rotten in the state of Denmark.’

+1

Classic. 🙂

Someone is in bed with BIG OIL & on the Take! in Denmark! …….

Ugh, as we had good news from Australia (the coal-sucking PM driven out) and await good news from Canada (a tar-sucking one might be on the way out) – there’s got to come something and spoil matters.

Well, on the bright side Denmark has a fairly small population and most people use transit or cycles most of the time. Also on the bright side… it seems Copenhagen city govt. is firmly into the EV camp, hopefully that won’t change anytime soon.

Tar sands will slow or cease 0nly if crude gets really cheap..

Too late, solar in the US is now cheaper then natural gas in All 50 States.

Tar Sands were actually dead the day they were first implemented. Only a Right Wing Troll CEO would have spent one red cent on them.

Make a note of this: The Worst CEO’s are right wing idiots.
That’s been proven true time and time again.

> “(a tar-sucking one might be on the way out)”

Trudeau supports the tar sands just as much, as he wants Alberta’s votes. Maybe do some research first, before posting.

I predict all Canadian provinces will follow Quebec’s renewable energy lead (wind and hydro), exporting excess renewable electricity to the energy-hungry United States. While all provinces might not have appropriate sites for very large hydro-electric projects like those in Quebec, what all provinces have in spades (except maybe New Newfoundland and Labrador) is vast, sparsely populated areas, especially farther north, that would be ideal locations for large wind farms. Canada should become the Saudi Arabia of wind power, exporting its excess renewable energy to the United States electric grid.

First let me say that the 180% registration fee doesn’t apply to the first 80.000 or so kroner, this plus a reward for every 1km it can exceed 16km on one liter gas.
The registration fee has made small and cheap cars popular in Denmark. Cars like e-Up! and Peugeot 207 have popped up everywhere.
Small cars are city friendly, so a lot of commuters living in Copenhagen, that would normally take public transportation or bike, have bought cars.
This has lead to a shortage of parking lots in Copenhagen.
The Copenhagen munity has recently decided, despite promises, to not grand EVs free parking in Copenhagen.
No free parking for EVs means that projects like DriveNow (400 i3s) are doomed.
Further more, the new goverment will also cut down on public transportation.

If I am correct, they need to tax the ev in order to be able to untax the NOx emmissions!

What is the Danish word for nuts?

It’s “Skørt”

So they are Fing Sqort.

I don’t understand how
90->175k and 134->278k
is tripling in price, doubling yes but not tripling.

180% taxes on cars is rassism against the hard working people.

So in your world, workers are a race? And they all need and want cars?

Don’t fire anyone, you’ll be guilty of genocide.

You’ve just succinctly demonstrated your complete lack of knowledge of Europe in general, and Denmark in particular. Way to go!

You can certainly tell, they don’t have an auto industry.

Denmark going from one of the most environmentally advanced countries elects a bunch of halfwits that go to reward smoking tailpipes. What a disgrace.

For the record, Sweden and Finland don’t give any material tax breaks to EVs either. Sweden makes them exempt from road tax for something like 5 or 7 years, and I think that’s worth something like $500 per year. There might be some other minor benefit as well, but nothing remotely close to what was the case until now in Denmark — or for that matter Norway.

Sweden has a 40k SEK ($4800 US) incentive, “supermiljöbilspremie”, for electric cars and other very low emission vehicles.

I have to admitt if they tax all cars 180% and invest heavily in public transport that isn’t such a bad policy. Everyone getting to work in an electric train or tram is a far better model than cities clogged with electric SUV s . Admittedly I would love to see either but I find it hard to be overly critical of the Danes.

Single Bus ticket to my job in DK cost 3$ for about 5 km

All buses run on diesel in DK, on average 8 persons is in a bus, a bus runs about 2 km on one liter of diesel in city

From Januar til September there was sold 849 Tesla in DK
http://www.bilimp.dk/statistics/index.asp

The smallest EV´s price will not increase so much f.eks VW UP

But this decision by the new Danish government is devastating for Electric car in DK

Good.

Tesla S is luxury good. Increasing price for luxury good actually increase sales 😉

Good thing is – EV-Sales will explode every time right before a raise. And chances are pretty good, that the government in Denmark will change before the incentives run out completely. Oh, and the value of a used EV will actually increase. So dear Danes, buy your EV right now!

Or the Danes could just buy their cars over the border and drive them back !

That is not possible. All Danish citizens driving a foreign registered car in Denmark will be fined and have to pay full registration tax on the car (180%) – even if it’s a foreign rental. Migrants moving to Denmark have one month to register their car in Denmark (which costs 180% in registration tax). So there are absolutely no loopholes.

It would require that you moved to an other country, bought the car, lived there for a given period of time, and moved back.

As a Dane (and half Norwegian) I have considered this option. 🙂

I see car plates in Ontario from Florida; maybe they could ‘move’ on paper and buy their EV’s next country over?

Wild Cat Citizen Strikes any time soon? Maybe get some VW TDi’s and run a hose from the exhausts into the air intakes of those nuts office buildings / Parliment, and see how that improves their thinking?

Fresh NOx, anyone?

you seem to mix the small(huge) scandinavian countries…..besides this is a major sales pitch for Elon and &!!!!…diesel is out,by now.Harper and dirt sands sadly remains ….(as the canadian superpolluting,noisy,beloved leafblowers…)

If the polls are correct Harper will be gone after Monday’s election.

Oh please let it be true.

180% tax on cars? If that happened here, we would violently revolt.

Well, they have reasons to do this. This are small countries and too many cars can clog them up. And they have no domestic auto manufacturing so why not tax such big imports? And then there is pollution reduction.