In order to secure a reduction of VAT in food, the government has found an alternative source for the 100 million euro shortfall in bringing back a luxury tax. The tax will affect owners of vehicles with 2-liter engines and above, yachts longer than 6 meters, swimming pools and aircraft.
Initially taxpayers were to pay a luxury tax in 2014 for vehicles they own in 2013, but now that the government and Ministry of Finances are bringing the luxury tax forward, taxpayers will be taxed in 2013 on vehicles the owned in 2012. This means that a taxpayer might be liable for the luxury tax over a vehicle they do not own anymore.
This new tax will affect about 100,000 car owners, which is expected to generate about 100 million euros. The luxury tax will be determined according to the size of the vehicles engine and date of registration. Vehicles over ten years old and vehicles owned by disabled taxpayers will be exempt from the luxury task.
