Tesla may be about to get a boost from a new Danish tax plan

Denmark has long sought to brand itself as one of the world’s greenest countries. So it may come as a surprise that it’s also one of the most expensive places on Earth to buy Teslas and other electric cars.

Under existing Danish law, a Tesla model 3 Long Range will cost almost $100,000 next year (with all the trimmings); more than a fifth of that price tag comes from an extra tax, according to data compiled by Berlingske.

On Monday, a government-appointed panel is due to present its recommendations for how to shift Danish buyers over to electric cars and away from petrol-powered vehicles. Proposals are expected to include lower overall auto taxes; instead, Danes face new road and emissions taxes.

Denmark collects about 50 billion kroner ($8 billion) annually in taxes from car sales. A majority in parliament has signaled a willingness to accept lower revenues if it means more consumers can afford electric cars.

Green Dreams

The Social Democrat government has staked its reputation on pushing through legislation that represents a paradigm shift in terms of protecting the environment. In June, lawmakers struck an historic deal to cut carbon emissions by 70% by 2030, from 1990 levels.

Denmark Strikes Historic Climate Deal to Slash Emissions

To reach that goal, which is considerably more ambitious than the European Union’s 40% target over the same period, more Danes need to buy cars that pollute less.

But there’s a very long way to go. Though electric-vehicle sales have risen, they still make up less than 1% of the country’s 2.7 million registered vehicles, according to the Association of Danish Car Importers.