Changes in motor vehicle taxes: Traffic tax system overhauled
These adjustments will affect not only the amount of traffic taxes but also the penalties associated with them. Approximately 5.5 million vehicle owners are expected to be impacted by the new regulations, which will bring substantial updates to the traffic tax system.
The economic administration is considering a restructuring of the annual traffic taxes paid by vehicle owners. To ensure timely implementation, traffic taxes are typically announced 2-3 months before the payment deadline each year. Therefore, swift decisions on these adjustments are crucial. A specialized committee is expected to finalize its work by mid-October, with the changes slated to take effect in the fall.
Currently, traffic taxes are determined based on engine size or carbon emissions. Electric and low-emission hybrid vehicles are exempt from these taxes.
What's Changing?
Under the new regulations, registration tax rates for passenger vehicles will range from 4% to 32%, based on the vehicle's taxable value, with the engine size criterion being removed. Instead, tax rates will be determined by the amount of carbon dioxide (CO2) emissions a vehicle produces.
Additionally, the luxury tax applied to vehicles with a factory price above €20,000 will be abolished. The 100% exemption for hybrid vehicles in registration tax will be reduced to 50%, and the partial exemption for motorhomes will be eliminated.
