MPs approve VAT exemption for hybrid cars

19.02.2021 - 19:21
MPs approve VAT exemption for hybrid cars
Hybrid and plug-in hybrid cars have been put on a par with electric cars in terms of duty relief

Parliament yesterday approved a bill to allow VAT exemption for hybrid and so-called plug-in hybrid cars until 2023.

In the days leading up to the vote, there was a heated debate on whether VAT exemption should only apply to electric cars or whether hybrid cars should also be included in this exemption.

Energy supplier SEV and the Environmental Agency have been arguing that granting VAT exemption for hybrid cars is a step backwards in the transition to green energy as these cars only partially run on electricity.

But at the third reading in Parliament yesterday, 16 MPs voted in favour of the bill and 14 against.


Read the Faroese version of this article here

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