Differentiated registration tax
Until the end of 2015, BEV cars were exempt from paying the (very significant) registration tax (VAT was still applied) (ACEA, 2017c). In 2016, the government decided to gradually phase in a vehicle registration tax for BEVs: 20% of the full registration tax in 2016, 40% in 2017, 65% in 2018, 90% in 2019 and 100% in 2020. The registration tax for cars has also decreased since 2015. These changes paralysed electric car sales. To re-boot the market, the Danish government introduced a deduction based on battery capacity in April 2017. At the same time it decided to maintain the registration tax for BEV cars at 20% for two additional years or until reaching the threshold of 5 000 new registrations (Government of Denmark, 2017). In October 2017, a new reduced registration tax for cars was enforced. This includes new incentives for electric and efficient cars (SKAT, 2018).
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