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ELECTRIC CARS

Electric cars lose right to drive in Oslo bus lanes

Norway is to strip electric cars of their nationwide right to drive in bus lanes, removing a key incentive that has helped turn the Nordic country into the world’s leader for electric vehicles.

Electric cars lose right to drive in Oslo bus lanes
An early Tesla Roadster outside the Norwegian Parliament in 2009. Photo: Liberal Party

According to Norway's NRK, the Conservative, Liberal and Christian Democrat parties agreed  in a meeting on Tuesday night to end the nationwide right for electric vehicles to drive in bus lanes, and also to end their exemptions from road tolls and parking charges. 

The agreement instead gives local authorities the right to decide whether electric cars can hold onto these incentives, a change likely to mean that they are stripped away in major cities such as Oslo and Bergen. 

In the three years since the Norwegian government slashed taxes on electric vehicles, and brought in a long list of other incentives, Norwegians have bought no fewer that 50,000 electric cars.
 
A full fifth of new cars bought in the country over the period have been electric, with the country single-handedly buying a third of the electric cars sold in Europe. 
 
The growing number of electric vehicles on the road, particularly in Oslo, has led to complaints of growing 
congestion in bus lanes.
 
Following late-night negotiations Wednesday, the right-wing government and its centre-right allies agreed to maintain the tax exemptions until 2017.
 
But electric car owners will be required to pay half of the yearly road license fee as of January 2018 and the full rate as of 2020.
 
The value-added tax (VAT) exemption for electric cars could be replaced by a subsidy of the same amount, which may be subjected to a ceiling that could be reduced as technology develops.

ELECTRIC CARS

Lower Danish taxes backed for home electric car charging

A commission appointed to facilitate conversion to electric cars in Denmark has said motorists should pay less tax for charging them at home.

Lower Danish taxes backed for home electric car charging
File photo: Emil Helms/Ritzau Scanpix

The so-called Car Commission (Bilkommission) has recommended that all private motorists should be offered a reduced tax rate on electricity of 0.8 øre per kilowatt hour when charging their vehicles.

Formed in 2019 to support efforts to increase the proportion of electric cars on Danish roads, the commission looks into how charging station infrastructure can be developed in a report released on Friday.

A previous report by the commission was released last year.

Under current rules, private consumers are allowed to pay the lower rate for electricity for use above 4000 kWh annually if their homes have pre-existing electric heating.

Homes on the heating grid or with gas heating are therefore likely to incur costs of 2,000-3,000 more annually if they charge electric cars at home, the report said.

As such, the commission has recommended a secondary meter for electricity consumption for charging cars.

However, the system could face difficulties enforcing and administrating, it said.

The cheapest way to charge an electric car is by using commercial charging stations, which are taxed at 0.4 øre per kWh.

That charged has been fixed until 2030 as part of reforms to Denmark’s car registration taxes designed to favour electric vehicles.

The commission said that this commercial advantage does not encourage motorists who drive more infrequently to switch to electric.

READ ALSO: How will Denmark's new transport proposal affect the cost of cars?

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