In these days the taxes for motor vehicles are due. But next year the taxes are replaced with a new traffic insurance fee. This is good news for those who want to split the bill.
The new tax has already been approved by the Parliament, but the collection starts in 2018.
– The main difference between the two taxes is that previously it was government’s responsibility to collect the annual tax, while next year it is the insurance companies that will bill you for it, said Head of the motor departemnt in Storebrand Insurance, Mats Sæterkvist.
Can be positive
The new tax is a result of the government’s desire to reduce administrative costs associated with the traditional vehicle taxes. Therefore, it is the insurance companies who will collect the annual fee along with liability insurance.
Instead of paying a big amount once a year, the amount allocated by how you pay your vehicle insurance. Some may pay monthly, others quarterly or annually.
Car owners pay their traffic fee for the period the vehicle has liability insurance. If you are selling your car, you have to pay traffic taxes to the car is re-registered.
– The favorable with the new scheme is that you as a car owner only pay for the days you actually need the insurance, while previously you had to pay anyway for at least half a year in the future.
If you have paid too much in advance of traffic tax when you sell your car, you will get the amount refunded by the insurance company, says Sæter Kvist.
What do I need to do?
The price you pay is determined by the Parliament, in the state budget for 2017 the taxes for a fuel car are set to 2,820 kroner. EVs will still have a very low annual tax.
So, the question everyone asks themselves: Do you as a car owners need to do anything?
– No, the only thing you need to do is to make sure you have car insurance, which is also required by law, concludes Sæterkvist.
Source: Storebrand / Norway Today