Car Tax in Denmark Drops to 100%

August 31, 2017 Taxation in Denmark

Cars in DenmarkCOPENHAGEN – Cars in Denmark are about to become significantly cheaper, with taxes falling to only 100 percent.

On August 29th the government of Denmark announced that the tax rate applied to the sale of cars will soon be slashed, a moved which could lead to a significant drop in the cost of owning a motor vehicle.

Cars sold in Denmark currently face a tax rate of 180 percent.

The high tax rate has resulted in a situation whereby cars sold in Denmark are some of the most expensive in Europe, with marked differences in pricing between Denmark and its nearest neighbours.

The new rate which will be applicable to the sale of cars will be 100 percent.

The government has published the potential future prices of some popular car models, showing that the VW Golf and VW Passat could fall in price by as much as 7 percent and 12.1 percent, respectively.

It is hoped that the reduced prices on cars will encourage greater consumer consumption, and a decreased rate of unemployment, as more people will be able to commute to work.