Government to discourage polluter cars with higher taxes

The government on Thursday adopted a special motor vehicle tax bill which should, as of 1 July, discourage the purchase of vehicles with high levels of carbon dioxide (CO2) emissions or the import of older vehicles and stimulate the purchase of good quality new vehicles with low CO2 emissions.

Finance Minister Slavko Linic said that the new vehicle tax deals with environment protection against CO2 emissions and to resolve the problem of imports of old vehicles, seeing that once Croatia enters the EU, it will be part of the common European market and it will not be possible to impose special taxes on the import of old vehicles.

Motor vehicle taxes will in future be based on the supply value of the vehicle and the level of CO2 emissions so vehicles with higher emissions will pay higher taxes.

Private vehicles will be taxed while commercial vehicles will be exempt. Special taxes on boats and planes will be abolished because of the low budget revenue from these.



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