The former Centre-Right Government adopted Lorry Road Pricing as part of the tax reform Spring Package 2.0 and the agreement on a Green Transport Policy in 2009. The Centre-Right Government used the proceeds to finance tax reliefs in the tax reform Spring Package 2.0. Subsequently, the Government as a result of the Finance Bill for 2012 has worked on a model to enable the tax.
During 2012 the Government made detailed analyzes of several models for Lorry Road Pricing. The investment cost and the future operating expenses for Lorry Road Pricing in Denmark has shown to be significant. Expenses concerns, inter alia, investment in the technical equipment, such as On-Board Units needed in every vehicle and the enforcement gantries to be deployed. In addition to that comes also the operating cost.
Altogether the Government is not convinced that benefits from Lorry Road Pricing in Denmark compare favorably with the associated administrative cost. On this basis the Governments has decided to refrain from introducing Lorry Road Pricing, as planned, from 2015.
The development heads towards more widespread implementation of kilometer based road charging for lorries in the European countries. This will provide additional operational experience that Denmark can benefit from. For example technical advances could reduce cost for development and operation to acceptable levels. If it proves possible to introduce Lorry Road Pricing in Denmark in a period of years without significant economic cost e.g. in the light of technological advances or operational experiences in other countries the Government will reconsider its decision.
The Minister for Taxation stresses that the Government of course will establish a funding model, so that the former Centre-Right Government decision on imposing the charge and using the revenue up-front will not affect future public finances. The Government expects to present a funding model as part of an upcoming package.