The Finance Ministry has introduced a new method for calculating the motor vehicles tax, which is expected to impact luxury vehicles and older vehicles with high emissions. This revised approach to taxation is likely to result in increased tax burdens on luxury cars and older vehicles known for their higher emissions. The specific details and criteria for this new calculation method would need to be reviewed in the official government announcements or tax regulations to understand how it will affect these categories of vehicles more precisely.During a session held on Tuesday, the Government approved amendments to the Decree on Calculating Motor Vehicles Tax and the Amount Necessary for Calculating the Motor Vehicles Tax. These amendments are driven by the necessity for a new methodology to calculate emissions from motor vehicles. The primary objectives are to protect the environment, fulfill commitments associated with the Paris Climate Accords, and align with the latest European Union (EU) standards, as stated by the Ministry of Finance in a press release.

The new methodology is rooted in realistic measurements of CO2 emissions from motor vehicles. According to the Ministry, it establishes a more direct link between the Motor Vehicles Tax and the negative environmental impacts caused by CO2 emissions.

This methodology, which is in line with EU standards and has been used for all newly produced vehicles in the EU since 2022, is globally harmonized for measuring CO2 emissions from motor vehicles.

The Ministry noted that this approach allows for more accurate taxation of passenger motor vehicles based on their average CO2 emission values, as indicated on the vehicles’ European Certificate of Conformity using the WLTP method. The primary goal is to incentivize citizens and businesses to invest in vehicles that meet higher environmental standards, whether new or used, thereby contributing to the reduction of air pollution and the decarbonization of transportation.

The new Decree is not expected to have a negative financial impact on those purchasing new vehicles, except for luxury or premium vehicles, based on Customs Administration import data. For used passenger vehicles, a negative financial impact will primarily affect more luxurious vehicles and very old vehicles.

The Finance Ministry emphasized that the drafting process for these amendments was transparent and inclusive, involving consultations with representatives from the country’s Economic Chambers, who expressed support for the adoption of the new Decree and the associated values for Motor Vehicle Tax calculation.