"To stimulate and increase the transition to a more environmentally friendly car fleet ... we suggest that new clean cars be exempt from the general automobile tax for the first five years," Finance Minister Anders Borg, Energy and Enterprise Minister Maud Olofsson and Environment Minister Andreas Carlgren wrote in an opinion piece in the Dagens Nyheter daily.

The tax, which according to the Green Motorist association annually averages around 1,600 kronor (140 euros, 180 dollars), would be exempt on all new electric or renewable fuel cars, as well as on new vehicles that emit less than 120 grammes (4.2 ounces) of CO2 per kilometre (0.6 miles), the ministers said.

The tax exemption would as of 2010 replace a 10,000-kronor rebate currently given to all clean car buyers, which is supposed to be phased out by the end of this year, they added.

The centre-right coalition government also wants to hike the price of diesel by 0.40 kronor per litre by 2013, increase taxes on trucks and up the tax on vehicles that emit more than 120 grammes of CO2 per kilometre.

Sweden, which counts some 4.3 million cars, has around 150,000 vehicles running on ethanol and biogas, according to industry organisation Bil Sweden.

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