Economic Instruments - Charges and taxes
CO2 Based Car Tax System (Slovenia)
In June 2009, the Government approved the draft Act amending the Motor Vehicles Act, regulating more types of motor vehicle (including motorcycles and mopeds), modernising the system of taxing motor vehicles by considering environmental criteria, and preventing double taxation (elimination of taxing used vehicles and the possibility of a rebate when exporting or leaving the country with a vehicle).
The main innovation is that the amended Act is environment-oriented, as the tax system considers the Kyoto Protocol provisions on gradually decreasing air pollution due to greenhouse gas emissions, and the EU guidelines on taxing vehicles, which promote the taxation of motor vehicles according to gas emissions, particularly CO2 and pollutants (solid particles and nitrogen oxides), which adversely affect air quality (Government of the Republic of Slovenia, 2009).
The key amendments introduced by the Act were the following:
- motorcycles and mopeds are also to be taxed
- the tax on motor vehicles already registered in Slovenia is abolished
- tax brackets are progressive and depend on CO2 emissions; compared to the current level, the tax burden will fall for motor vehicles emitting less that 150g of CO2 per kilometre and rise for vehicles above this level; for motor vehicles emitting between 150g and 210g of CO2 per kilometre (which is about half of newly registered vehicles) there is a transitory period, with tax rates between the current ones and those stipulated in the Act, which will be fully enforced on 1 January 2011. Due to the additional negative effects of the release of other pollutants, motor vehicles with diesel engines which do not reach emission level Euro 6 are taxed according to a higher rate than comparable motor vehicles with petrol engines; after the end of the period, when a remission of tax is still possible (i.e. after 31 December 2009), motor vehicles releasing up to 110 g CO2 are to be taxed at a very low rate (0.5 per cent for petrol-fuelled motor vehicles and 1 per cent for diesel vehicles); vehicles with diesel engines which emit over 0.005d g/km, and motor vehicles releasing less than Euro 4 level or Euro 5 after 1 January 2010.
References
Government of the Republic of Slovenia, 2009. Presse Release. The Government approves draft amendments to the Motor Vehicles Act and discusses the beginning of the planning for the 2010 and 2011 budgets
http://www.vlada.si/en/news/press_releases/press_release/article/5/3396/747a
In June 2009, the Government approved the draft Act amending the Motor Vehicles Act, regulating more types of motor vehicle (including motorcycles and mopeds), modernising the system of taxing motor vehicles by considering environmental criteria, and preventing double taxation (elimination of taxing used vehicles and the possibility of a rebate when exporting or leaving the country with a vehicle).
The main innovation is that the amended Act is environment-oriented, as the tax system considers the Kyoto Protocol provisions on gradually decreasing air pollution due to greenhouse gas emissions, and the EU guidelines on taxing vehicles, which promote the taxation of motor vehicles according to gas emissions, particularly CO2 and pollutants (solid particles and nitrogen oxides), which adversely affect air quality (Government of the Republic of Slovenia, 2009).
The key amendments introduced by the Act were the following:
- motorcycles and mopeds are also to be taxed
- the tax on motor vehicles already registered in Slovenia is abolished
- tax brackets are progressive and depend on CO2 emissions; compared to the current level, the tax burden will fall for motor vehicles emitting less that 150g of CO2 per kilometre and rise for vehicles above this level; for motor vehicles emitting between 150g and 210g of CO2 per kilometre (which is about half of newly registered vehicles) there is a transitory period, with tax rates between the current ones and those stipulated in the Act, which will be fully enforced on 1 January 2011. Due to the additional negative effects of the release of other pollutants, motor vehicles with diesel engines which do not reach emission level Euro 6 are taxed according to a higher rate than comparable motor vehicles with petrol engines; after the end of the period, when a remission of tax is still possible (i.e. after 31 December 2009), motor vehicles releasing up to 110 g CO2 are to be taxed at a very low rate (0.5 per cent for petrol-fuelled motor vehicles and 1 per cent for diesel vehicles); vehicles with diesel engines which emit over 0.005d g/km, and motor vehicles releasing less than Euro 4 level or Euro 5 after 1 January 2010.
References
Government of the Republic of Slovenia, 2009. Presse Release. The Government approves draft amendments to the Motor Vehicles Act and discusses the beginning of the planning for the 2010 and 2011 budgets
http://www.vlada.si/en/news/press_releases/press_release/article/5/3396/747a
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