Income tax to go down for low and middle earners
Those with an income below 750,000 kroner will see the income tax they pay decrease in 2023.
According to a 2023 budget proposal example, a family with two incomes of 550,000 kroner in Norway is likely to pay about 7,800 kroner less tax in 2023 compared with 2021.
Norway’s Finance Ministry has previously stated that the tax changes will mean that 76 percent of Norwegian workers will pay less or the same amount in tax as they currently pay.
VAT to be introduced on electric cars
From 2023, the VAT exemption for electric car purchases will be removed from all new sales. Previously electric cars were exempt from VAT or MVA.
Consumers must pay VAT on all-electric cars that cost more than 500,000 kroner. The percentage of VAT will scale up with the overall price of a car.
Under the new subsidy scheme, buying an electric car with a sticker price of more than 600,000 kroner would become 25,000 kroner.
Electric cars over 1 million kroner will become 12.5 percent more expensive due to the VAT charges.
Additionally, re-registration fees for used electric cars will also be introduced.
Kindergarten prices to go down
The maximum price for daycare in Norway will be reduced to 3,000 kroner per month in 2023.
Furthermore, daycare will be free for all children in Finnmark and Nord-Troms, and – in the rest of the county – for the third child in families with three children in daycare simultaneously.
E-scooter users will need to insure their devices
E-scooter owners in Norway will be required to insure their devices to use them in the New Year or face heavy fines.
Driving without insurance could land users in hot water and end up with them receiving a hefty fine for breaking the Vehicle Liability Act.
As e-scooters are classified as “small electric motor vehicles” under the new rules, they will need corresponding coverage.
This means that the insurance will need to cover unlimited sums in case of injury and up to 100 million in case of property damage.
In addition, insurance policies will need to be taken out on each device a person owns.
Those who use scooters from rental firms will be insured on devices they hire from these companies due to a new rule implemented on September 1st.
Transport changes
If you use ferries in Norway, then 2023 is shaping up to be a great year for you.
The government plans to halve ferry rates in the year ahead for everyone, while people living on Norwegian islands that don’t have road connections will get to travel by ferry for free.
Both petrol and diesel in Norway will also become cheaper as fuel duty will be cut.
New duty-free rules
From January 1st, residents of Norway will only be allowed to bring in 100 100 cigarettes, 125 grams of other tobacco products (for example, snuff or rolling tobacco) or 100 grams of other nicotine products and 100 cigarette papers as tax-free as luggage on arrival from abroad to Norway.
This will also become the new limit for what can be sold to travellers in Norway when they arrive at the duty free shopping area.