From Iceland — New Law Designed To Increase "Green" Cars

New Law Designed To Increase “Green” Cars

Published June 25, 2012

A new law passed by parliament will hopefully make “green” cars more competitive.
“Green” cars – i.e. electric and hydrogen fueled cars – are beginning to see a slight increase in Iceland. However, the cars remain more expensive than petroleum-fueled cars to purchase.
Vísir now reports that parliament has passed a law that would make these cars an exception financially, and will not be subject to VAT. The reasoning article of the law specifically states that this measure is designed to make the vehicles more competitive in the automobile market.
Bjarni Þ. Sigurðsson, the manager of sales for Renault, told reporters that he was happy to hear the news, as he believes it shows the government is serious about promoting electric cars. With the VAT exception, the price of an electric car will be only slightly higher than a diesel car.
He adds, however, that he does not expect the law to result in an immediate increase in sales, which he believes will take a few years yet.

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