Changes to registration tax for cars

Changes to registration tax for cars

The method used to calculate cars’ registration tax is changing radically, according to a draft law the Finance Ministry has put up for public consultation.

According to the ministry, the new rules form part of the broader government policy for the renewal of the country’s existing vehicle fleet and the promotion of new-technology cars with lower emissions.

The new policy introduces a novel system of progressive taxation for passenger vehicles, while the additional charges are dependent on the age of each vehicle according to Euro anti-pollution technology.

Among other things, the bill will make hybrid models more attractive. They will enjoy a tax discount up to 75% provided their emissions do not surpass 50 grams of carbon dioxide.

For example, the current method provides for a car worth 20,000 euros before tax to pay registration tax of €3,200. With the new, progressive system, the registration tax would have a 4% rate for the first €14,000 of the car’s value – i.e. €560 – a 26% rate for the next €3,000 – i.e. €780 – and 53% for the other €3,000 – i.e. €1,590 – for a sum of €2,930.

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