Minister backs EV Boom with tax reform plan

Rasmus Stoklund, the Danish tax minister, intends to support the continuous surge in electric vehicle sales, which have been performing better than expected since the target of one million EVs by 2030 was set by the VLAK government in 2018. An essential part of this plan is to re-negotiate the current lower tax rates for electric vehicles, set to expire on January 1, 2026. Stoklund acknowledges the role of the tax system in making electric vehicles attractive by reducing their otherwise higher costs and notes the variety of electric vehicles available at different price points. While considering the ongoing shift from fossil-fueled vehicles, the government projects reaching one million electric vehicles by 2030. However, Mobility Denmark’s analysis suggests this milestone could be met by early 2028, possibly reaching 1.6 million by 2030, if the current tax rates are maintained.