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Denmark puts distance based tax on hold

Publicerad den 26 February, 2013

The Danish Government withdraw the proposal to introduce distance-based tax for trucks from 2015. The reason is said to be that the cost of investment and operation would be too high compared to the benefits. Tax Minister Holger K Nielsen says that user fees are a sound principle, but the cost for both the government and the companies would be too high with today’s solutions.

It’s observed that several countries in Europe consider implementation of distance-based road charging and the danes want to benefit from the experience of others. If development and operating costs fall to a more acceptable level, the Government will reconsider the possibility of introducing the tax. ARENA has an activity to analyze possible synergies through Nordic cooperation in the road toll area, a task that becomes even more relevant by the new Danish position.

Danish business organizations are generally in favor of the stopping – or, as some put it, the scrapping, of the distance based tax. The Danish decision means that the Eurovignette system will continue to apply in Denmark.