Siv Jensen will replace the annual fee – HegnarOnline

Siv Jensen will replace the annual fee – HegnarOnline

The government currently sends out for consultation proposals to replace the annual fee on car with a fee of traffic policies. The change will simplify and provide greater flexibility for vehicle owners. The proposal is part of the Government’s efforts to simplify and streamline tax administration.

– The aim is simplifications for most people and a more flexible collection of the annual fee. But this would be an important contribution to achieving the government’s goal of reducing government bureaucracy and resource use, says Finance Jensen in a message.

Of all excise duties is the annual fee that has the highest administrative costs for the state. This is because the requirements of today sent out to each car owner. The government wants to replace road tax with a tax that is imposed on the sale of insurance compulsory liability insurance on car (traffic insurance). The new tax will have the same structure and level as the current annual fee, and the financial burden for the individual car owner is assumed to be the same as today. Insurers will bake the new fee into the price of its products and car owners will pay for this through the ordinary premium payment. Car owners will with the new scheme only have one bill to pay, against at least two days.

Traffic Insurance fee allows for greater flexibility in the fee for purchase of new cars, changes in ownership, unregistrations and the like, that driver will be charged fee only for the time the vehicle is insured. Car owner will partly avoid paying tax if the car unregister and insurance stopped, for example if the car is not used in winter. This has long been demanded by including motoring associations.

Those who currently pay insurance premiums quarterly or monthly will thus distribute the burden of traffic insurance fee in the same way. Car owners can divide the payment, instead of paying one big annual invoice such scheme is today.

The Norwegian insurance is effective, customer-friendly and have good IT systems, and will be able to implement this change in their systems . The Ministry of Finance has been in close dialogue with the insurance industry in the design of the proposal and aim aim has been to design the scheme in a way that is at least possible burdensome for the industry.

The Ministry of Finance considers that a new scheme will reduce the total cost of administering the tax. The state will be able to relate to a handful insurance instead sending out requirements for 3.5 million vehicles. Since insurers can bake fee into premium requirements, corporate costs could be substantially lower than current costs of the annual fee.

In the proposal it is envisaged that the scheme technically could be implemented from 1 January 2017. This presupposes however, that companies will be able to implement the necessary changes in their systems within this time race. The Government will make a final decision when the scheme is to be introduced when the consultation is closed.