After weeks of wrangling over revenue sources to replace an unpopular education tax that was scrapped, the government is expected to announce by Monday automobile registration fee hikes based on CO2 emissions and the age of the vehicle.
Firstly, the exemption from registration fees will be narrowed from the current exemption for vehicles with emissions of 100 grams CO2/km, and will only apply to cars with emissions of up to 90 grams. The change will apply to vehicles acquired after October 1, 2010.
Under the current regime, 200,000 vehicles were exempt from fees, with most of these being in the 90-100 gram range. The government will reportedly impose a fee of nine cents per gram in this category. Hence, a car with emissions of 98 grams will now be charged with an 88 euro fee.
Secondly, all vehicles registered after 1 November 2010 will be saddled with fee hikes. This covers approximately 480,000 vehicles, which currently are charged between nine cents and 3.4 euros per gram. This is expected to be hiked by between 10 and 30 cents per gram, with cars that have low CO2 emissions paying less.
Hence, for example, a car with emissions of 120 grams until now paid nine cents per gram, or 108 euros. In 2016, the fee will go up by 11 percent, to 120 euros. A vehicle with emissions of 300 grams until now paid 3.4 euros per gram, or 1,020 euros, but now the owner will pay 1,110 euros, an increase of 8.8 percent.
There will also be substantial changes in charges for the over three million registered vehicles acquired before 1 November, 2010. In this category, the finance ministry will apply a reduction coefficient, based on the age of the vehicle. For automobiles up to 10 years old, a five percent fee reduction is expected, while for cars over 10 years old there may be a reduction of up to 15 percent. The reduction will likely apply only to vehicles above 1,400 cc.
The rationale behind this discount is to encourage drivers who have withdrawn their vehicles from circulation to register them once again, producing more state revenues. Hence, for a 1929 cc car, the current 660 euro annual registration fee will go down to 600 euros.
To avert a drop in revenues, an increased coefficient will apply to newer cars among those that were registered before November 2010, which will depend on engine power. Consequently, vehicles with two-liter engines that are over 15 years old will pay a smaller fee than last year, while those that are six or seven years old may have to pay five to 10 percent more.
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