Lower Danish taxes backed for home electric car charging

Lower Danish taxes backed for home electric car charging
File photo: Emil Helms/Ritzau Scanpix
A commission appointed to facilitate conversion to electric cars in Denmark has said motorists should pay less tax for charging them at home.

The so-called Car Commission (Bilkommission) has recommended that all private motorists should be offered a reduced tax rate on electricity of 0.8 øre per kilowatt hour when charging their vehicles.

Formed in 2019 to support efforts to increase the proportion of electric cars on Danish roads, the commission looks into how charging station infrastructure can be developed in a report released on Friday.

A previous report by the commission was released last year.

Under current rules, private consumers are allowed to pay the lower rate for electricity for use above 4000 kWh annually if their homes have pre-existing electric heating.

Homes on the heating grid or with gas heating are therefore likely to incur costs of 2,000-3,000 more annually if they charge electric cars at home, the report said.

As such, the commission has recommended a secondary meter for electricity consumption for charging cars.

However, the system could face difficulties enforcing and administrating, it said.

The cheapest way to charge an electric car is by using commercial charging stations, which are taxed at 0.4 øre per kWh.

That charged has been fixed until 2030 as part of reforms to Denmark’s car registration taxes designed to favour electric vehicles.

The commission said that this commercial advantage does not encourage motorists who drive more infrequently to switch to electric.

READ ALSO: How will Denmark's new transport proposal affect the cost of cars?


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