Swedish Government extends tax incentives for NGVs and methane refuelling infrastructure until 2016

2013 May 27


Swedish Government proclaimed this year a triannual extension of an existing incentive for cars powered by alternative fuels. Energy Minister Anna-Karin Hatt announced the government’s decision, which will prolong the reduced tax benefit until the end of 2016, applicable for company cars powered by environmentally friendly drives, such as Natural Gas Vehicles (NGVs), plug-in hybrids or electrics.

The benefit offers car buyers 40% reduced rate of taxation, lowering the cost of new NGVs to the same level as those of petrol- and diesel-powered vehicles. This measure will indirectly also benefit the private car market as companies usually renew their fleet vehicles every three years. Furthermore, the initiative is expected to subsequently lead to the build-up of more vehicle gas filling stations and an even increased biomethane production in the Scandinavian country, although the biomethane share already amounts to 60% of the total methane used in Swedish NGVs.

The decision by the Swedish authorities goes in line with similar recent initiatives on national and EU-level, favouring methane powered vehicles and providing stimulus for companies to intensify investments in the build-up of a comprehensive vehicle gas filling stations network, which for many years remained the bottleneck for a substantial market penetration of NGVs.

Source: NGVA Europe