Sweden to phase out tax break for ecologically friendly cars

Stockholm - Sweden was set to phase out the current tax break offered for ecologically friendly cars some six months earlier than planned, citing the aims of the tax had been "achieved," a cabinet member said Monday.

"The rebate scheme was introduced to give eco-cars a flying start. The rebate has been a success. Roughly every third new car sold today is an eco-car," Environment Minister Andreas Carlgren said

"We have achieved our aims," Carlgren said.

The scheme, offering a 10,000-kronor (1,500-dollar) rebate, was launched in April 2007 and was initially due to be in place until the end of December 2009, but was now slated to end in June 2009, Carlgren said.

Carlgren said potential eco-car buyers had sufficient time to buy their vehicle, and the rules concerning what cars could get a rebate would not be changed.

"It is not reasonable that the government and taxpayers in the long-term pay for our car purchases. We have achieved what we wanted to do and have surpassed all expectations so it is better to use the money for other issues that benefits the environment," he said.

In all, the ruling centre-right government has allocated some 815 million kronor for the rebate scheme aimed at wooing car buyers to choose low-emission vehicles such as hybrids and ethanol-powered cars.

The move was criticized by the Association of Green Motorists.

Tbe government is "foolishly" stopping the rebate "because it's been such a success," association spokesman Mattias Goldmann told broadcaster TV4.

Owners of eco-friendly cars are also exempt from paying congestion fees in place in the Swedish capital Stockholm. (dpa)

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