End of Benefits for Electric Car Drivers? They Generate Costs but Pay Less Tax

Until now, electric car users have largely been exempt from road fees. According to experts, the current system needs to be changed. The report has been submitted to Finance Minister Jens Stoltenberg. The document addresses the long-term challenges of fiscal policy.

The Fiscal Policy Committee points out that electric cars have the same impact as combustion vehicles, such as causing traffic jams and road wear. According to the committee's chair, Ragnar Torvik, these costs should be included in the fees. The current system does not account for this. Today, EV drivers pay less than users of combustion cars.

Torvik emphasizes that electric cars also generate costs for society. The report refers to so-called external costs, which are related to road traffic. Experts believe these should also be valued in the case of EVs. This applies to the entire road network.

Currently, road usage tax is paid by drivers using petrol and diesel. Electricity is not subject to this fee. The committee criticizes this solution. The report states that an increasing number of drivers are not covering the costs they generate.

According to Torvik, the key factor is the price relationship between electric and combustion cars. Past experience shows that this affects drivers' choices. The report also highlights the impact on the state budget. A significant portion of tax breaks over the past decade have applied to EVs. The committee points to the timing of these revenues.

The report is advisory and is presented to the government once a year. The recommendations do not mean automatic changes to the law. Future fees will be decided by politicians. The document is part of a broader debate on funding road infrastructure, which concerns the growing number of electric cars on Norwegian roads.