The Government of Sweden has extended the reduced tax benefit on company cars powered by alternative fuels for another three years, seen as a stimulus to sales of natural gas vehicles (NGVs) by member-funded industry organisation Energigas Sweden. More natural gas vehicles on the road will reduce emissions, especially given natural gas fuel in the country comprises more than 50% biomethane derived from renewable resources.
The long-awaited announcement, delivered by Energy Minister Anna-Karin Hatt, extends the incentive through to end 2016. Company car buyers receive 40 percent reduced rate of taxation, bringing car costs into line with the cost of gasoline-and diesel-powered vehicles,
“It is very positive that Anna-Karin Hatt and the government now gives a clear indication of what will apply to company cars over the next three years. Now, sales of natural gas vehicles can pick up speed again. It is good not only for company car drivers but also for climate and air quality in our cities,” says Anders Mathiasson, CEO Energigas Sweden.
Mathiasson added that the private car market will also benefit from the incentive, in that companies typically roll over their cars every three years, relasing used NGVs onto the market. This in turn leads to more new gas filling stations being established and demand for biogas production increases.
At the end of 2012 there were more than 44,300 NGVs in Sweden and 195 public and fleet filling stations, according to figures published by Gasbilen.