The government organ Skatterådet, a tax council whose responsibilities include deciding certain subsidy rates, is to discuss a potential change to the tax subsidy given to commuters who travel over a certain distance to work, kørselsfradraget, trade union publication Fagbladet 3F reports.
Financial assistance for commuters in the form of a higher subsidy is not likely to take effect imminently, however, according to the report.
“The Tax Council can decide extraordinarily to change the subsidy rates,” read a written comment from the council to 3F.
“The chairperson of the Tax Council, Jane Bolander, has asked the Tax Council its next (meeting) to more generally present the development of petrol prices in relation to the (commuting subsidies),” it said.
“Any adjustment to the rates would be decided a later meeting,” it said.
The commuter deduction, termed kørselsfradraget in Danish, is designed to cover the cost of travelling to and from work over a set minimum distance. It applies to rail and car journeys alike. The deduction is always calculated based on kilometres travelled if the journey was made by car, even if it was actually made by train.
Commuters can claim the deduction if they travel over 24 kilometres to get to and from work over (12 kilometres each way).
An equivalent tax relief for commuters who use their private vehicles to get to work, the befordringsgodtgørelse, is also being considered by the Tax Council.
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The Tax Council is next scheduled to meet on March 22nd, according to its website.
FDM, an interest organisation for motorists, welcomed the possible change to the subsidy.
“The pain threshold for commuters was reached when the price of a litre of petrol already at the turn of the year was one krone above what the Tax Council’s rates are based on,” FDM’s consumer economist Ilyas Dogru told news wire Ritzau in a written comment.
“With record-high petrol prices expected to continue all year, we thin the Tax Council should correct the rate with retroactive effect,” he said.
Petrol prices have increased considerably in Denmark following the Russian invasion of Ukraine, due in part to European discussions of a possible ban on Russian oil imports.
On Tuesday, the list price for a litre of petrol in Denmark was just under 17 kroner. Many petrol stations set their prices slightly lower than this list price to attract customers. A price of around 15.89 kroner per litre could be observed at most petrol stations on Wednesday morning.
Just five months ago in October 2021, a consumer price of 13.99 kroner per litre was reported to be Denmark’s highest-ever petrol price.