Norway considers removing tax emption for heavy EVs

Electric vehicle leader Norway is considering removing a tax exemption on EVs weighing more than two tonnes.

Zero-emission vehicles comprise nearly 30% of its total market, but the government is putting the brakes on some subsidies as part of next year’s budget, Quartz Media says.

Dubbed the Tesla tax, as it’s considered most likely to impact models like the Model X SUV, it would increase the cost of buying a new Tesla X by about 70,000 kroner (NZ$15,482).

Norway has at least 13,000 registered Teslas.

The country’s finance minister Siv Jensen says the heavy EVs cause as much road damage as petrol and diesel cars, so EV owners should contribute more to upkeep.

Tesla and other EV owners would still benefit heavily compared to other vehicle owners, Quartz Media says.

Norway, which has more than 100,000 EVs, wants all new vehicles sales to be zero-emission models by 2025. It has offered subsidies and other incentives to encourage EV uptake, such as no city tolls, free parking, free charging, and bus lane use.