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Triple blow for drivers: higher VAT and road tolls, but no funds for repairs

Redakcja

15.10.2025 15:07

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Triple blow for drivers: higher VAT and road tolls, but no funds for repairs

Activists warn that Norwegian roads are in a deplorable state. Nevertheless, revenue from road tolls is being allocated elsewhere. Fot. materiały prasowe NAF

Norwegian drivers may soon face higher costs related both to the purchase of electric cars and to the daily use of roads. Proposals included in the draft state budget for 2026 foresee tax changes and increased fees, which – according to the NAF organization – could hit drivers hard across the country.
The Norwegian Automobile Federation (NAF) warns about the consequences of the planned increase in VAT on electric cars. Lowering the VAT exemption threshold from NOK 500,000 to NOK 300,000 could make popular family models more expensive by tens of thousands of NOK.

The gradual phasing out of the full exemption is to last until 2027. According to NAF, the accelerated introduction of these changes could also drive up prices on the used car market.

Road tolls keep drivers up at night

The 2026 budget draft foresees higher revenues from road tolls (bompenger) while keeping spending on infrastructure repairs limited. The government plans to increase income from these tolls to NOK 17.3 billion. At the same time, investments in roads are to remain at a similar level as this year.

NAF points out that toll revenues mainly go to urban transport projects instead of repairing and maintaining local roads. As a result, more and more sections of municipal roads require urgent repairs.
The aim of urban projects is, among other things, to increase the accessibility of public transport and to develop sidewalks and bicycle paths.

The aim of urban projects is, among other things, to increase the accessibility of public transport and to develop sidewalks and bicycle paths.Photo: valeriyap - stock.adobe.com/Editorial use only

Norwegian roads in urgent need of repair

The organization warns that the technical condition of many municipal roads is deteriorating. The cost of restoring them to good condition is estimated at over NOK 100 billion, but the funds allocated in the budget are only increasing symbolically.

The 2026 plan includes only a slight increase in spending, covering tunnel safety and landslide prevention. NAF points out that maintaining a balance between funding for roads and public transport is becoming increasingly difficult.
If the announced changes come into force, drivers may feel the impact both when buying a car and in their daily transport expenses. In the longer term, this may also mean increased pressure on the government to revise the way road infrastructure and support for electromobility are financed.
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