Norway faces 'Tesla tax'
- New tax proposal will affect all electric cars that weigh more than two tonnes

The Norwegian government has proposed the introduction of a new tax on all electric cars that weight more than two tonnes, such as Tesla, according to the country's national budget for 2018 on Thursday.

"The proposal implies that only heavy electric cars, with a weight in excess of two tonnes, will be subject to motor vehicle registration tax," the budget draft noted and added, "Electric cars will still be accorded significant advantages in comparison with cars running on fossil fuels."

As Tesla's cars have the biggest battery packs in the automotive industry, the tax could hit the Tesla market in Norway.

Norway aims to sell only zero emission cars by 2025, but the new tax has been criticized in Norway's media and has been dubbed "Tesla-tax."

The Norwegian tabloid newspaper VG said that the proposed tax could add around 70,000 Norwegian kroner ($8.850) to Tesla's Model X cars.

On the other hand, the budget draft noted that the government proposed that electric cars be exempted from re-registration tax and traffic insurance tax.

"The traffic insurance tax replaces the annual motor vehicle tax from 2018. It is proposed that the low rate of value added tax be increased from 10 to 12 percent," it stressed.

The Scandinavian country's government said that all tax proposals, including public goods and services, will increase revenues by about 865 million Norwegian kroner accrued in 2018.

By Murat Temizer

Anadolu Agency




13 Oct,2017