DR reports that the Danish government and Dansk Folkeparti are expected to present a tax deal on Thursday that cuts petrol and diesel duty by two kroner per litre in 2027.
According to reporting by DR Nyheder, the agreement between the government and Dansk Folkeparti (DF) is due to be presented on November 12. The broadcaster says the duty on petrol and diesel will be lowered by two kroner per litre in 2027.
In return, DF would vote for the government’s tax package. That means abolishing the mellemskat and the so-called toptop-skat, and cutting corporate tax from 22 to 19 percent. DR notes that cheaper fuel was DF’s main demand and the party’s central election pledge, an issue covered in our earlier report on DF’s fuel tax demand.
How the deal would be paid for
DR’s sources say the money for cheaper fuel in 2027 comes from phasing in the tax cuts over several years. That applies to both the mellemskat and corporate tax, while the toptop-skat is scrapped in one step.
DF also commits to backing the rest of the financing, DR reports. That includes savings on SU for students living at home and a clean-up of business subsidy schemes. DF would additionally receive a pool of 300 million kroner for lower duties, with the specific duties not yet agreed, though DR says the reduction must be permanent.
Within the government, Radikale Venstre has opposed lowering the fuel duty over climate concerns, according to DR. As compensation, the parties agreed to extend the low duties on electric cars. The plan had been for the most expensive EVs to become more costly from New Year.
Other outlets report similar terms with some differences. TV2 Østjylland says fuel could become about two kroner cheaper in 2027, citing TV2’s own information and other Danish media. ING, citing Politiken and several negotiation sources, reports the deal has already been concluded rather than merely expected.
ING also notes that the government proposed in late September capping EV registration duty at 366,200 kroner. That cap would have raised prices on pricier electric cars from New Year. Meremobil.dk, citing B.T., reports that the fuel cut and the EV freeze initially apply only to calendar year 2027, keeping current low rates one year longer than planned.
What the deal would mean for drivers, students and taxpayers from abroad
Several Danish terms matter here. Mellemskat is a middle income tax band, while registreringsafgift is the one-off registration duty that makes new cars expensive in Denmark. SU is the state study grant, and hjemmeboende refers to students living at their parents’ home, the group DR says faces savings. A fuel duty cut of two kroner per litre would feed directly into the cost of running a car for anyone commuting by petrol or diesel vehicle.
For foreign residents who pay Danish tax, the package would change both income tax and duties, though DR reports the mellemskat and corporate tax cuts are phased in over several years rather than arriving at once. EV owners and buyers would avoid the January increase on the priciest models, according to DR, with B.T.’s reporting via meremobil.dk indicating the freeze initially covers 2027. The details of the 300 million kroner duty pool are not yet settled, and nothing is official until the parties present the agreement, as flagged in our earlier story on the tax reform talks and explained further in our guide to income taxes in Denmark.
