Minister promises car tax reduction.

09 Nov, 2005

The very high rate of car tax in Denmark may be about to change. The taxation minister Kristian Jensen announced during the countrys car show Cars for All that a special committee would be set up to see how Denmarks 180 per cent car import tax could be reduced without the government losing revenue, and how the use of greener cars could be encouraged. However, the minister did not specify a timetable for the changes. It has been suggested that car registration fees be eliminated or decreased and that green taxes levies aimed at encouraging people towards more environmentally friendly solutions be increased. The minister insisted that if any changes are to be made they must help improve the environment and decrease traffic levels. Car importers were pleased with the announcement but said that they would be putting pressure on the government to make the changes swiftly.