
Tax Minister rejects immediate EV tax hike
Danish Tax Minister Rasmus Stoklund refuses an immediate tax raise on electric vehicles (EVs), despite environmental economist Lars Gårn Hansen recommending it due to better than expected EV sales. Analysis indicates Denmark may reach its goal of one million EVs by early 2028 if current trends continue. Higher taxes could be economically sensible as the reduced registration tax on EVs is costly. However, Stoklund argues that it’s not yet time for higher taxes, emphasizing only around 11% of cars on Danish roads are EVs, and the recent positive trend with increased affordability should be maintained. In December, 61.5% of new registrations were electric, with EVs making up 51.5% of the 173,047 cars sold in 2024. Current policy will see EV taxes increase by eight percentage points annually from 2026-2030. Stoklund plans to enter talks with parliamentary parties on taxes and aims for an agreement by spring or summer.