Three extra years for electric cars

Electric cars have been given three extra tax-free years in Denmark. The postponement has pleased Copenhagen Cleantech Cluster, who would have preferred a longer deadline.

At the end of February, it was agreed to give electric cars an extension on the tax exemption. The previous agreement provided electric cars tax exemption until the end of 2012 on account of the growing development of the cars, but now the deadline has been brought back till the end of 2015.
- A decision that pleases the Head of Secretariat of Copenhagen Cleantech Cluster, Nicolai Sederberg.

- Denmark shall be a test country for future energy and climate friendly technologies. This requires that the framework is in order, and with the postponement of the tax exemption for electric vehicles, we are sure that Denmark will be an attractive country in which to develop electric vehicles. Therefore, I am very pleased with the decision, he says.

Long-term legislation

In particular, the whole aspect of special laws, which only apply for a few years, may turn out to be a challenge, when trying to attract foreign companies. It may deter interested parties from putting too much at stake or they might even find other countries that offer better conditions.

- One of the crucial parameters for foreign investors is transparent and sustainable legislation, which will not be changed every few years. It is debatable whether the end of 2015 is far enough into the future. It should be considered future-proofing the law, here as well as on other similar areas, by making it untouchable for at least 10 years into the future, explains Nicolai Sederberg.

The tax exemption does not apply to hybrid cars, which many have found odd because it presents a risk of an imbalance between the various sustainable technologies. The Danish Tax Minister Troels Lund Poulsen has replied that the question of the inclusion of hybrid cars in the exemption scheme will be discussed by a task force set up by the government.