The effects of a restructure of the registration tax

The Danish Car Importers has asked Copenhagen Economics to analyse the effects on vehicle purchases and the consequent effects on greenhouse gas emissions by changing the current value-based registration tax to a so-called technical registration tax based on the vehicle’s CO2-emissions and weight.

Such a tax change would be able to bring the following effects:

• Improve safety equipment in cars and thereby reduce traffic accidents
• Promote climate friendly features in cars
• Make it more attractive to buy larger and more expensive cars
• Greatly reduce current administrative complexity

The study is commissioned by The Danish Car Importers