Government wants to increase work transport deduction

Decision is a response to the rising fuel prices brought about by high inflation and the conflict in Ukraine

Car owners will likely have noticed that the cost of filling up their vehicles has increased of late.

Petrol prices have spiked recently due to high inflation and the conflict in Ukraine, so the government has come up with a plan to alleviate the price hike for those who must drive to work. 

“Currently you pay 14-15 kroner for a litre of petrol and that is something you can feel in your economy,” PM Mette Frederiksen told DR Nyheder.

“So we propose to increase the work transport tax deduction in 2022 to help all those who need their cars to go to work.”

READ ALSO: Petrol prices in Denmark reach an all-time high

Over 24km
The Skatterådet tax council will meet this week to decide whether to make the increase.

The amount per km will be decided by Skatterådet, but the politicians can decide whether the deduction should have greater value. 

Currently, people commuting to work in their cars are able to claim work transport deduction (kørselsfradrag) if they drive over 24 km to and from work.

As it stands now, car commuters receive 1.96 kroner per km if they commute 25-120 km and an additional 0.99 kroner per km (1.98 in outer municipalities) if they drive over 120 km.

Read more about kørselsfradrag here (in English).