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Denmark Ponders Slashing Car Tax—to 100%
Denmark, which currently levies registration fees on cars as great as 180% of their price, may lower the cap to a mere 100%, Bloomberg News reports.
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Denmark, which currently levies registration fees on cars as great as 180% of their price, may lower the cap to a mere 100%, Bloomberg News reports.
The proposed cuts would still leave Demark with some of the highest car prices anywhere. Bloomberg says a government list of would-be savings under the plan indicate savings of 7% and 12% for a Volkswagen Golf hatchback and Passat sedan, respectively.
Denmark lacks a domestic auto industry and has been freely raising import taxes on cars for decades. The result is that a Golf that sells for as little as €15,800 ($18,900) elsewhere in Europe costs €28,300 ($34,000) in Denmark. The starting price on a €98,400 ($117,900) Porsche 911 Carrera sports car is €255,800 ($306,600).
Bloomberg says the proposed tax cuts are part of an initiative by Prime Minister Lars Lokke Rasmussen to help bolster the buying power of worker paychecks.
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