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This is clear after the EEA Authority, ESA, decided today to extend the VAT exemption to zero-emission electric cars until 2022.
ESA justifies the decision by claiming that it is in line with the EEA’s objective of environmental protection.
The decision was not natural.
Consideration of environmental measures weighed heavily
– The challenges are that the prices of electric cars and fossil cars are close to each other. We are beginning to approach a situation where it may no longer be necessary to keep VAT at zero for an electric car to be affordable enough for consumers to choose an electric car over fossil cars, says Gjermund Mathisen, director of competition and state aid from ESA, to NRK.
However, the audit concluded that it was within EEA rules and it was sensible to extend the VAT exemption.
– When we agreed to maintain the exemption for another two years, it is because we have not yet reached that point that electric cars are competitive in price and other characteristics. It is also because, under the EEA agreement, it is important to take strong action to protect the environment in the future, says Mathisen before concluding:
– For electric car enthusiasts, it’s just a matter of bouncing off the Christmas champagne now.
Finance Minister Jan Tore Sanner (H) is very satisfied with ESA’s decision.
– In dialogue with ESA, we have highlighted the government’s ambitious climate policy. Increasing sales of zero-emission vehicles is a prerequisite in the government’s strategy to reduce emissions from the transport sector, and I am pleased that ESA approves an extension of the Norwegian electric vehicle exemption, says Sanner on the site. government website.
