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Sweden’s July steep vehicle tax hike sparks last minute June car sales frenzy
Published: Tue, 03rd July 2018 17:21:18 GMT  

Sweden car sales tax change Bonus Malus

June new car sales in Sweden went through the roof. Apart from a massive 72.9 per cent pole-vault jump in new car sales to 66,244 units June also enters Sweden’s auto-industry record books as the highest-ever sales month for new cars. Significant increases in annual vehicle taxes, particularly for vehicles with high CO2 emission came into effect July 1 this year. These tax hikes for higher polluting cars in particular were at the root of June’s car sales bonanza

The sudden and lively commotion in Sweden’s June car market was unsurprising and totally expected. 

In a nutshell, and echoing to an extent the vehicle tax structure in a great number of European countries, the higher the CO2 emissions of the new car, the higher the annual vehicle tax. 

New zero-emission BEVs will get a SEK60,000 (€5,800) purchase bonus (Bonus Malus)

Perhaps most significant, the one-off subsidies for low-emission electric (BEV) and plug-in-hybrid cars have changed. 

In short, starting July 1 this year, buyers of new zero-emission BEVs will get a SEK60,000 (€5,800) purchase bonus. 

The bonus is paid six months after first registrations. 

The Swedish government made a cunning plan to finance the higher incentives for future purchases of ultra-low emission vehicles like BEVs and PHEVs for instance. 

This started July 1. 

AID investigates change and likely effects...

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