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Carriers will be compensated. Danish government to ease new environmental tax for companies

After a series of protests from carriers, the Danish government has agreed to compensate road transport companies to ease the burden that the new green tax will impose on them, according to the country’s national press. The tax was introduced by the government in an attempt to reduce pollution, but carriers argued that it was unfair and would hurt their business.

Strikes by transport companies during the winter and spring have caused severe disruption to traffic and business across Denmark, and while the government hasn’t budge on tolls, it has now agreed to help with the transition to green mode.

The Danish government has agreed to pay 300 million crowns (about 40 million euros) in compensation to carriers over the next three years to ease the burden that the new tax will place on them.

The shipping union welcomed the agreement but said the money was just a drop in the ocean. They stated that the compensation package would not solve the financial difficulties faced by the carriers.

The union added that they will continue to work with the government to ensure that compensation is distributed fairly and that the government takes further steps to support the trucking industry.

The authorities, in turn, said they are striving to reduce pollution and improve air quality. However, they also acknowledged that the green tax created difficulties for some carriers. The compensation package is designed to help those carriers that have been hit the hardest by the tax.

However, the agreement is a temporary measure, the Danish government will review the green tax in two years to see if it is still needed.

What is the recently introduced “green” tax?

It was introduced by the Danish government in the first quarter of 2023 to reduce pollution from trucks and improve air quality. The amount of the tax depends on the weight of the vehicle and the distance it travels.

The tax is calculated as follows:

-weight tax: DKK 0.30 (€0.04) per kilogram of truck weight

-distance tax: DKK 0.01 per kilometer

The vehicle’s Euro class also determines the amount to be paid: the tax will be higher for gasoline or diesel powered trucks, while zero emission trucks pay the lowest tax.

The tax applies to all trucks weighing more than 3.5 tons and driving more than 100 km per year, and by 2030 these costs will apply to all public roads in the Danish road network.