Norway proposes to expand the tax on electric vehicles to include mass-produced Tesla models.
Norway will gradually eliminate the main subsidy for electric vehicles over two years, tightening VAT rules in 2026 and completely eliminating benefits in 2027, even though the share of fully electric cars in new sales has reached a record 98.3% and the goal of "full transition to electric vehicles" for 2025 has actually been achieved. Reuters.
The VAT threshold will decrease from 500,000 kronor (≈49,535 USD) to 300,000 kronor (≈29,721 USD) in 2026, and then disappear in 2027, while registration fees for fossil fuel vehicles will increase to maintain the relative advantage of electric vehicles. For the Tesla Model Y, Norway's best—selling car, which starts at 422,000 kronor (≈41,808 dollars), the 2026 change will add 25% VAT on the part exceeding 300,000 - approximately 30,500 kronor (≈3022 dollars); and the complete cancellation of benefits next year will add approximately 75,000 kronor (≈7430 dollars).
The government argues that the incentives have served their purpose; the Association of Electric Vehicles calls the move "hasty" and warns of a possible return to internal combustion engines, when seven out of ten cars on the roads are still running on fuel.