EV tax break campaign gathers speed / News / The Foreigner

EV tax break campaign gathers speed. Motorists’ interest organisation NAF releases reports on electric vehicle benefits as the EU considers the legalities of zero-rated VAT. The Rightist bipartite coalition and partners the Christian Democrats (KrF) and Liberals (V) are to tackle whether to maintain the current perks this spring. Free parking, driving in bus lanes (which has irritated and delayed bus drivers), and escaping road toll charges are other benefits included in the scheme.

electriccars, co2, climate, emissions, globalwarming



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EV tax break campaign gathers speed

Published on Tuesday, 17th March, 2015 at 21:03 under the news category, by Michael Sandelson   .

Motorists’ interest organisation NAF releases reports on electric vehicle benefits as the EU considers the legalities of zero-rated VAT.

Tesla Model S charge port
Tesla is one of a few electric vehicle makes available in Norway.Tesla Model S charge port
Photo: Joseph Thornton/Flickr


The Rightist bipartite coalition and partners the Christian Democrats (KrF) and Liberals (V) are to tackle whether to maintain the current perks this spring.

Free parking, driving in bus lanes (which has irritated and delayed bus drivers), and escaping road toll charges are other benefits included in the scheme.

The year 2017, or 50,000 EVs on the road are the limits set before these are removed. Sales of these vehicles reached 15 per cent in January this year.

Parked?

The 50,000-EV threshold could be passed as soon as May this year if current sales levels continue, however.

Moreover, hybrid vehicle sales have skyrocketed since tax breaks were also introduced for these.

NAF thinks it is too early to abolish tax concessions on EVs.

“Politicians must now sit tight and not destroy their own success. Pulling the plug out now will mean recent years’ EV policy will have been in vain,” NAF CEO Stig Skjøstad says in a statement.

Some of the points contained in the report they commissioned from analysis company Oslo Economics are:

  • EVs would not be particularly competitive with fossil fuel-powered cars without current concessions due to the major gap in total costs and qualities.
  • Reducing EV benefits should take place in line with decreasing production costs, as well as electric motor and battery technology development to maintain competitiveness.

“Norway is an important market to drive battery technology development and increased electric vehicle production forward,” declares Mr Skjøstad. “The report makes it clear that it is currently too early to equate EVs with fossil fuel-powered cars.”

The full Oslo Economics report can be read here (in Norwegian).

Or off the road?

NAF released another report, Tuesday. The aim of this one, a campaign for EVs in cooperation with power companies Haflsund and Eidsiva, was to promote knowledge about EVs and their drivers, according to the motorists’ interest organisation.

The poll’s main target, which involved 50,895 respondents and was Norway’s largest EV one conducted so far, was to examine market potential.

Its main results were:

  • 74 per cent want current advantages to be continued after 2017.
  • 39 per cent are considering buying an EV.
  • Quietness, cost-efficiency, and range anxiety are important associations for many.
  • Exemption from paying road tolls was the most important advantage.

Meanwhile, the EFTA Surveillance Authority (ESA) is currently considering whether or not Norway’s zero EV VAT rating constitutes state aid, and whether the scheme is in line with EEA state rules, if so.

Norwegian authorities only recently notified ESA of the zero VAT rating and extending this to cover EV leasing and sale and import of batteries for them. ESA and Norway are discussing the issue.

ESA is to either decide to approve Norway’s notifications, or to open an in-depth investigation if they deem these contravene the EEA Agreement regarding protectionism.

Norway, which has some 2.5m passenger cars, including the EVs, also faces an appearance in the EFTA Court in Luxembourg for exceeding emissions levels laid down in the EU Ambient Air Quality Directive.



Published on Tuesday, 17th March, 2015 at 21:03 under the news category, by Michael Sandelson   .

This post has the following tags: electriccars, co2, climate, emissions, globalwarming.





  
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