Sweden modifies taxes to favour electric cars

Electric, hybrid vehicles reclassified, amendments made to company car regulations

The Swedish government is amending its tax regulations to promote more use of electric and hybrid gas/petrol cars, the environment ministry has announced. The vehicles will be reclassified in a category with those producing least emissions and attracting the lowest rate of tax, with effect from 1 July. Regulations for company cars will also be amended, to remove what a ministry spokesperson called an unintentional bias against electric and hybrid vehicles. Until now, company cars have been taxed according to price: the ministry believes this discouraged sales of more environmentally friendly models, which tend to be more expensive. Electric and hybrid cars will attract the lowest rate of tax, retrospective to the start of the current tax year on 1 January.

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