In most cases, the cost of buying a new environmentally friendly car is still too high for the average person, and in many cases the eco-subsidy does not even cover the taxes. I believe that the tax credit is the key to the transition to clean vehicles.
My proposal covers the REPLACEMENT of an old vehicle for an electric vehicle or a vehicle with negligible emissions (below 20g CO2/km) (the Slovenian average in 2017 was 117g CO2/km).
So I propose:
1. that the current rate of DMV (Motor Vehicle Tax) be reduced from 0.5% to 0% for all purchases of electric vehicles that have no direct emissions.
2. that the rate of VAT on the purchase of a new environmentally friendly car be reduced from 22% to 16%, but only if the car is a REPLACEMENT car (i.e., the individual would have to sell or destroy the existing car within 1 year of purchasing the new environmentally friendly car).
The tax credit proposal makes sense to me, as it would help to speed up the transition to electric and environmentally friendly vehicles, which are currently quite expensive. The eco-tax is only part of the story. The VAT rate of 22% is a bit outdated, as most other EU countries have a lower rate.
I would appreciate any views on the proposal.
Kind regards