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Expert suggests higher tax on electric cars

Lars Gårn Hansen, an environmental economist and professor, recommends earlier than planned tax increases on electric vehicles (EVs) in Denmark due to strong sales. Longstanding lower registration taxes aimed at promoting climate-friendly car sales could be equalized with fossil fuel vehicles sooner, he says to Altinget. In December 2024, EVs accounted for 61.5% of new cars registered, and over half of the year’s sold cars were electric. Forecasts show Denmark may hit 1 million EVs by early 2028, surpassing the political goal set for 2030. Tax adjustments could reflect the lesser need for tax incentives, says Hansen. The current policy is set until January 1, 2026, and Tax Minister Rasmus Stoklund plans to discuss the EV tax system to encourage continued development.