Electric vehicle owners in Denmark may soon face significantly higher costs, as a new proposal from industry groups suggests introducing an annual road usage fee of over DKK 11,000. This initiative aims to balance the advantages EVs have long enjoyed under the country’s tax system.
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EV tax advantages under review
For years, EVs have benefited from reduced registration taxes, making them far cheaper to own than petrol or diesel cars. However, the Danish Society of Engineers argues that this system has led to substantial revenue losses for the state. According to their calculations, the cost to society has already reached tens of billions of kroner annually, far exceeding initial projections.
The proposed charge, based on an average annual mileage of 15,000 kilometers, would amount to DKK 11,250 per vehicle. The organization calls it a “green road tax” intended to make EV contributions to public finances more proportional to their road usage. Their traffic expert described the current situation as “unsustainable,” warning that EVs effectively “drive for free” compared with traditional cars.
Data from the Ministry of Taxation supports this view: EV owners currently pay just DKK 0.24 per kilometer, while petrol cars average DKK 1.30, and diesel cars even higher.
Political Uncertainty
It is still uncertain whether the proposal will be implemented. So far, Tax Minister Ane Halsboe-Jørgensen has declined to comment on the potential changes, leaving the future of EV taxation in Denmark in question.
