Norway to End VAT Exemption for Electric Cars in 2027

Norway’s government, represented by Finance Minister Jens Stoltenberg, announced plans to end the 25 % VAT exemption for electric cars beginning in 2027. The statement was made during the presentation of the 2026 budget to parliament on 16 October 2025.

Electric‑vehicle adoption has reached a 95 % market share in 2025, and electric cars accounted for over 98 % of new registrations in September 2025. Given this saturation, the government deems the VAT break unnecessary, intends to raise taxes on fossil‑fuel vehicles and will lower the price threshold for VAT on new electric cars from 500,000 to 300,000 kroner.

The removal of the exemption is expected to raise electric‑car prices, though they should remain financially attractive. The proposal still requires parliamentary approval and has been criticised by the Norwegian Electric Vehicle Association. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/internasional/1814489/adopsi-mobil-listrik-berhasil-negara-ini-bakal-hapus-pembebasan-ppn).