I am reading an amendment to the DMV bill. Again, I wonder which "expert" has come up with such a complicated taxation system. True, they abolished the luxury tax, which made no sense because it was linked not to price but to engine power, so that now a €300,000 luxury car would cost €50,000 less. Still not enough to make it worth registering abroad.
Secondly, they have nicely taxed all the rest of the class, who now have the luxury of various Opels, Renaults, Golfs, Passats and other middle-class vehicles, for which they will now pay much more. If today it costs €100 to €500, in 2021 it will cost between €700 and €3000. Clever, no question, you will pick up the shortfall in money from those who already have nothing anyway. This is the result of the crisis tax - we cannot take from the rich, so let us put pressure on those who are forced to have a car anyway.
A few more enthusiasts will throw in the towel, because now an older car worth a meagre €2 000 will get as much as €10 000 in tax. As if anyone who buys such a car with a big engine is going to be doing a lot of miles and has to be taxed for all the carbon dioxide it emits.
Ladies and gentlemen of the Ministry, is it really that difficult to add one and one? You have compared a bunch of countries, you have made a comparison and, of course, you have not taken into account the standard and purchasing power. And you must have deliberately left out countries where there is no tax.
You have already made a mistake once, you have collected significantly less tax than you wanted. Now you are burdening all classes, including those who buy cheap cars. And that is supposed to be the appropriate long-term solution?
If we are going to have free movement of goods in the EU, such taxation is illogical. They inhibit purchasing power, money flows out of the country. When you understand this simple thing, you might abolish the clumsy taxes that serve no one. People will stop buying, you will spend the money on inspections, and the piggy bank will remain empty.
The tax you have proposed should be reduced by at least a third, and even abolished for newer vehicles. This is taking into account all the revenue that will be generated by the increased sales, which is mainly VAT, excise duties and all the other taxes that car companies pay into the Treasury every month.