state budget, State budget 2022 | Alcohol, tobacco, fuel and electric cars will be so much more expensive in 2022

Increases taxes on popular and necessary goods. Even having an electric car becomes more expensive.


See reactions to the state budget from the walking hall:



In the proposal for the state budget for 2022, the government wants the following changes in central taxes:

News studio: All about the state budget 2022

Alcohol:

The taxes on alcohol are increased by around 1.3 percent.

I in addition to all rates which is discussed in this case, the value added tax (VAT) is 25 percent (tax on tax).

This means that the alcohol tax for one liter of ordinary beer is actually NOK 27, while the state charges NOK 55 in alcohol tax for one bottle of red wine.

PS! Norwegians’ alcohol consumption provides around NOK 13.2 billion in revenue to the state – plus VAT. This amounts to an average of NOK 3,700 a year for each adult person.

There are so many fees on a bottle

For spirits, wine and strong beer, the tax varies with the strength of alcohol on each individual bottle.

For example, a bottle of red wine with 13 percent has a higher tax than a bottle of white wine with 11 percent. The calculation method is:

Alcohol poison * 1.25 [moms] * alcohol percentage * 0.7 [liter per flaske]

Examples with 2022 tax level:

Bottle of red wine with 13 percent:
4.82 * 1.25 * 13 * 0.7 = 54.82 kroner

White wine 11 percent:
4.82 * 1.25 * 11 * 0.7 = 46.39 kroner

Vodka 40 percent:
8.22 * 1.25 * 40 * 0.7 = 287.7 kroner

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Tobacco

Prices for tobacco mainly increase by around 6.5 per cent.

In total, the state earns around NOK 6.4 billion on Norwegians’ tobacco consumption – plus VAT.

Fuel

The government continues to step up the general CO2 tax sharply, and this also means that the CO2 tax increases for fuel.

For petrol, the tax is increased from NOK 1.37 to NOK 1.78 per liter (+ 30 per cent). For diesel, it increases from NOK 1.58 to NOK 2.05.

In addition, the pure toll is adjusted as follows:

  • Fuel: From 5.01 to 5.08 kroner per liter
  • Diesel: From 3.58 to 3.65 kroner per liter

In total, this means that the pump price (including VAT) for petrol will increase by around 60 øre, and diesel by around 69 øre.

The road use tax gives the state just over NOK 13 billion in revenue – plus VAT.

Traffic insurance fee – electric car bang

The motor insurance tax, formerly known as the annual tax, is now changed so that electric cars and cars with internal combustion engine treated equally. That means a massive increase in the fee for electric cars. This is a fee paid per day the car is registered.

For electric cars, it amounts to around 900 kroner a year.

The motor insurance tax secures the state around NOK 9.5 billion a year. It is not subject to VAT.



The electricity tax will be cut less than announced

2021 has been the year where Norwegians have experienced historically high electricity prices, and now the government is taking action to reduce taxes:

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The government is lowering the electricity tax by 1.28 øre, from 16.69 to 15.41 øre. The electricity tax is subject to VAT, and is therefore in reality 19.26 øre per kWh. The cut is somewhat lower than what was announced in advance.

The state earns around NOK 11 billion a year on the electricity tax – plus VAT.

Also read: The electricity must be so expensive before an electric car becomes more expensive than a diesel car

News studio: All about the state budget 2022

The proposal for the State Budget for 2022 has been made by the Solberg government, but may be changed by a new government before it is adopted by the Storting before Christmas. The new government does not have time to create a completely new budget, and the main features will therefore probably be the same.

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