Government vows to fix van price hike blunder

The price of large vans has gone up significantly due to a new calculation method for CO2 emissions

Akstovan, the Faroese Vehicle Administration, has called on the Ministry of Finance to amend the law on CO2 taxes as there has been a significant drop in sales of large vans this year.

Høgni Djurhuus

20.02.2020 - 06:12

Large vans became 27-38 percent more expensive after 1 January when a law on CO2 taxes was changed.

The law change was made in 2018, but it did not become applicable to large vans until the start of this year.

Before the law change, CO2 emission values were based on the old NEDC test (the New European Driving Cycle). When the law was changed, a new test cycle, known as WLTP (Worldwide Harmonised Light Vehicle Test Procedure) was implemented. WLTP is believed to be a more robust test cycle for cars, with higher but more realistic CO2 and fuel consumption values.

Big price hike for vans

Car dealerships have since complained that large vans have become much more expensive.

This price hike was not intended, according the finance ministry, which is planning to make further changes to the law.

The ministry notes that it will not return to the old NEDC system, but rather that it will adjust its taxes in accordance with the WTLP method.

Translated by prosa.fo