Skip to content
OrbitaxOrbitax

Iceland to Introduce New Kilometer-Based Tax on Clean Energy Vehicles

|Proposed Changes|Iceland
Iceland

Iceland's Ministry of Finance and Economy has published a draft bill for consultation on the introduction of a new kilometer-based tax on clean energy (electric and hydrogen) and plug-in hybrid vehicles. The new tax is meant to address the decreasing tax revenue caused by the popularity of eco-friendly cars and ensure funding for road construction and maintenance. The proposed tax rate is ISK 6 per kilometer driven for electric and hydrogen vehicles and ISK 2 per kilometer for plug-in hybrid…

Continue reading with a Pro Subscription

Unlock full Orbitax Tax News content, including a historical database of tax news, alerts, and analysis from our network of tax experts, all tailored to your company footprint. Now includes Orbitax XatBot AI Tax Assistant.

Free trial available. Cancel anytime. Free Orbitax account required.

Already a Pro or Pro+ subscriber? Sign in to Orbitax to continue reading.