Government plans to cut student aid and end EV tax break to fund budget measures

According to four cabinet members, the upcoming budget will eliminate state education grants for students residing at home and will cease the extension of the lower registration tax for electric cars. The funds are slated for initiatives such as free dental services, reduced taxes and a shift toward greener agriculture. Previously, a gradual increase in EV registration fees was scheduled to start in early 2026, but the timeline was pushed back after a deal with the Conservative party.

An expert group was created to propose a permanent overhaul of vehicle taxation, yet its report is still pending. The Danish Industry association noted that the government has not yet consulted the panel, and its automotive director warned that raising EV taxes again would be counterproductive.