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

Under existing Danish law, a Tesla model 3 Long Range will cost almost $100,000 next year with more than a fifth of that price tag coming from an extra tax.
By : Bloomberg
| Updated on: 07 Sep 2020, 01:49 PM
File photo of Tesla Model 3. (AP)
File photo of Tesla Model 3. (AP)
File photo of Tesla Model 3. (AP)
File photo of Tesla Model 3.

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.

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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.

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(Also read: Tesla Model 3 sells like hot cakes in pre-owned market, may be better than new)

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.

(Also read: Survey finds this EV to be the 'most satisfying' car across all age groups)

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.

First Published Date: 07 Sep 2020, 01:49 PM IST
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