Norway revising incentives for electric cars

The Daily Telegraph reports on latest developments in Norway over electric vehicle incentives.

Norway’s eco sweeteners turn sour

Norway plans to cut some of the incentives offered to drivers of electric cars – which now account for almost a quarter of the country’s new vehicle registrations – because the government is missing out on too much money.

The Scandinavian nation has introduced a raft of privileges for environmentally-friendly vehicles, including toll-free driving, free public parking, use of public transport lanes and exemptions from heavy car taxes. The generous measures have helped make electric cars highly popular – 50,000 have been registered in the past month – but they have drawn criticism because of the state’s loss of income.

Bus drivers have also complained of traffic jams in bus lanes.

Following negotiations, the government agreed to maintain the tax exemptions until 2017.

But electric car owners will be required to pay half of the road licence fee as of 2018 and the full rate as of 2020.

The tax exemption could be replaced by a subsidy of the same amount, which may be cut as technology develops.

Local authorities will have the right to decide whether electric cars can park for free.

It has raised doubts about the future of the incentives, especially in the capital Oslo, which has the highest concentration of electric cars.