The Ministry of Finance has long announced changes in excise duties on passenger cars. At present, we have no official government position on the final version of the bill. However, we have learned the announcements that can be described as probable.
What are the rates of excise duty on passenger cars today?
Article 105 Excise duty laws (Journal of Laws of 2009, item 11) He's only expecting two rates of excise duty on passenger cars. first for vehicles with an engine capacity not exceeding 2000 cm3, second vehicles with a capacity greater than 2000 cm3. There is a huge difference (six times). Lower stakes 3.1%, higher is set at 18.6%.
Well, it's pretty simple. It's about protecting the environment. Larger engines emit more exhaust.
However, the question arises why a car with engine capacity 2005 cm3 should be subject to a tax rate six times higher than that of a capacity 1990 cm3. Moreover, engines smaller but older can be much more toxic than those newer and larger. The validity of the current design of this provision seems very dubious.
How excise duties on passenger cars can look as of January 2017?
According to the Ministry of Finance’s announcement, excise duties are to depend on engine capacity, car age and combustion standards. In place of previous two excise duty rates will appear several dozen. However, there is no guarantee that the new rules will in practice not entail a higher tax burden for people importing passenger cars from abroad or buying new ones on the domestic market.