November 22, 2017 / 6:54 PM / a year ago

UPDATE 1-Norway's minority government wins backing for 2018 fiscal budget

(Updates with confirmation, detail on dropped ‘Tesla tax’)

OSLO, Nov 22 (Reuters) - Norway’s right-wing minority government reached a deal on Wednesday with two centrist parties for a 2018 budget, securing the plan’s passage in parliament, the parties said.

The government of Conservative Prime Minister Erna Solberg and Progress Party Finance Minister Siv Jensen relies on compromises with the opposition Christian Democrats and the Liberal Party to win backing for its policies.

“We are glad that we have reached an agreement on a budget that focuses on jobs,” said Nikolai Astrup, the lead negotiator for the Conservatives, flanked by the negotiators for the other three parties.

The four parties scrapped a budget proposal to trim lavish tax breaks for Tesla and other electric cars, which have given the Nordic country the world’s highest rate of battery-vehicle ownership.

The Christian Democrats and the Liberals are environmentally minded and the proposal, dubbed the “Tesla tax” in the Norwegian media, had stirred controversy after it was proposed.

The proposal in the draft budget would have mainly affected large cars weighing more than two tonnes, and was intended to scale back the favourable treatment of luxury models such as Tesla’s Model X sport utility vehicle.

Norwegian media had estimated it could have pushed up the price of a Tesla Model X by 70,000 Norwegian crowns ($8,557.98).

$1 = 8.1795 Norwegian crowns Reporting by Gwladys Fouche; Editing by Terje Solsvik and Gareth Jones

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