Green Gone Wrong? Norway's Generous EV Incentives Push National Budget Into The Red

Norway's government said on Tuesday it would review high taxes on cars but reaffirmed some of the world's most generous subsidies for electric vehicles, which mean one in five cars sold in the Nordic nation so far in 2015 is battery-powered.

A revised budget said that the runaway success of electric cars in the nation of 5 million people meant a projected tax shortfall of 2 billion crowns ($267.79 million) for 2015 because of exemptions from value-added tax and other benefits.

The right-wing government said it would review car taxes and work out new rules for 2016, but stressed that policies would "stimulate a newer, safer and more environmentally friendly car fleet."

Last month, electric car sales in Norway reached a cumulative total of 50,000, or two percent of all cars on the road. They make up fractions of a percent in most nations.


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ParadoX - 5/13/2015 9:08:51 PM

+1 Boost

Probably has more to do with the drop in oil prices. Remember Norway is a major oil producer, a decline in prices will result in much lower revenue.