Regulation of taxation and environmental surcharges on January 1st, 2024
According to the ambitious "Grøn vejtrnasportaftale" from 2020, where the ambition is to get 1 million green cars on the roads, greener fuels and a significant CO₂ reduction by 2030, we will see a regulation of surcharges, taxation and duties as of January 1st, 2024 – completely in accordance with the agreement.
What regulations will there be?
Interest on residual duty
In 2023, we saw an increase in the interest rate for residual tax, and with effect from 1st of January 2024, there will be a further increase in the interest rate. The interest rate in H1 2023 was 2.3%, 4.4% in H2 2023, while the rate will rise to 5.5% in the first half of 2024.
Environmental surcharge
The environmental surcharge has gradually increased over the last few years. It will therefore gradually become more expensive to drive a petrol or diesel car in the coming years compared to an electric vehicle. However, it should be mentioned that electric vehicles also pay an environmental surcharge, although not in the same amounts. In 2024, there will be new rates for the environmental surcharge, increasing from 450% in 2023 (ownership tax x 4.5) to 600% in 2024 (ownership tax x 6).
Read more here: Periodic taxes
Bottom deduction amount is locked
As part of the Finance Act 2024, the government has allocated DKK 200 million to postpone the otherwise planned tax increase on electric vehicles. The tax on electric vehicles was planned to increase in the new year as part of the phase-in of registration tax for zero-emission vehicles, which electric vehicles are, but is not happening. Specifically, this means that the bottom deduction will be locked for zero-emission vehicles and maintained in 2024 and 2025.
The locking of the bottom deduction only affects the registration tax on electric vehicles that exceed DKK 400,000 and that pay registration tax. In 2023, the amount was approx. DKK 449,000 incl. VAT, and in 2024 the amount will be approx. DKK 436,000 incl. VAT.
In practice, this means that the registration tax for electric vehicles across the border will increase by a maximum of approx. DKK 8,500 instead of the original approx. DKK 10,500.
