Norway has effectively achieved its 2025 goal of 100% electric new car sales, prompting the government to declare "mission accomplished" and propose scaling back EV tax exemptions to reflect a mature market. "We have had a goal that all new passenger cars should be electric by 2025, and ... we can say that the goal has been achieved," announced Finance Minister Jens Stoltenberg. Electrek reports: With the finish line in sight, the Norwegian government is now fine-tuning its approach. The current incentive program maintains the crucial VAT exemption for EVs, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000 USD). This move is designed to target more expensive, luxury EVs, ensuring that the incentive benefits a broader range of consumers.
However, the latest budget proposal aims to reduce the EV tax exemption to vehicles costing 300,000 Norwegian kroner (~30,000 USD). This would apply for 2026, and then the tax exemption would completely end in 2027. Additionally, the government plans to increase taxes on new gasoline and diesel cars, further widening the cost gap between polluting and zero-emission vehicles.
However, the proposal still needs to be adopted by Norway's government, and there is some opposition. EV associations are advocating for a more extended phase-out period to ensure that the adoption rate doesn't decline.
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