As per a study conducted by Henrik et.al., in Norway and Sweden, the company car tax for hybrid and electric cars is reduced. The tax is reduced up to 40% in Norway in the case of electric and hybrid cars thereby promoting the green car fleet.
Although there is no significant statistical data available for company or private cars driving in Nordic countries, however, according to the Danish Tax Ministry, more kilometers are covered by the company cars than the average cars as the contribution of CO2 emission was significantly less in the transport sector.
One of the other initiatives taken by Norway is also to have a tax discount on company cars that are using electrical vehicles. Similarly, in Sweden, 60% tax is implemented to electric, hybrid, and gas cars and an annual discount of a maximum of SEK 16,000 as compared to conventional cars.
The initiatives proved an efficient growth in Nordic countries where electric cars are the most in Norway and it has been counted as 3028 in number and the country is considered to be the most advantageous in electric cars.
The most efficient packages are listed below in the case of Nordic countries: –
- Registration tax has been exempted.
- Purchase with zero rate of value-added tax.
- The annual tax is strongly reduced.
- Municipal parking lots have been allotted with free parking spaces.
- The road toll has been exempted.
- The public transport lane has been assessed with the drive.
- Domestic ferries have been exempted from car tax.
- Driving allowance with a higher rate when the car is used in the public sector.
- The company tax basis is only 50% of the car value.
- The city government in Oslo and Askershus, are dynamically active with the involvement of the selling electric cars with good packages.
In my opinion, the above-mentioned initiatives and approaches toward green fleet cars place Sweden and Norway as a strong members to participate in the cause of CO2 emissions, elimination, and reduction of pollutions with a forward-looking attitude towards the electric and hybrid cars and incorporate them not only in private ventures but also as company cars.