The Ministry of Finances has announced six initiatives regarding the taxation of vehicles, which aim to develop a fairer and more efficient tax framework. The most significant legislative initiative is the abolition of engine capacity from the car tax.
The planned initiatives are as follows:
- Abolition of engine capacity from car tax; instead, vehicles will be taxed based on the retail value (before taxes), with a progressive adjustment of the registration tax rate.
- Used vehicles that are imported will be liable for VAT and relevant checks
- Introduction of an “environment tax” to encourage owners to scrap older, more pollutant vehicles
- Replacement of the current vehicle withdrawal system with a fairer taxation system which will subsidize vehicles with low market value
- Develop greater tools identification of uninsured vehicles
- Adjust taxation of vehicles
