This year, the Corporate Income Tax Law has raised the threshold for a representative car from EUR 50,000 to EUR 75,000.
According to the transitional rules, this threshold applies to cars purchased from 1 June 2023. Izīda Gerkena, executive director of the Moller Auto group of companies in the Baltic states, states that these changes will not only bring the long-awaited “springboard” for the auto market to return to stable growth, but will also open up new investment opportunities for companies in mobility.
“During the past years, an absurd situation arose in the car market, due to the increase in prices, new family cars actually became luxury vehicles. In other words, the threshold provided by the law, up to which the car representative tax is applied, was stuck in time, not changing according to the current market situation and thus slowing down the growth of the market. Not to mention the tax burden on companies that discouraged them from renewing their fleets. Now that the law has been changed, we are likely to see an increase in demand for both vehicles with internal combustion engines and electric cars. It is important to mention that with the changes in the law, the volume of cars in the “Moller Auto” assortment, which will not be subject to the car representative tax, has increased by 10% in Latvia. In addition, the biggest increase is precisely for Audi brand cars – 31%,” says I. Gerkena.
At the same time, she adds that, although cars with a specific configuration have to be waited for, the company’s warehouses are able to provide a wide range of cars, giving the opportunity to buy a car and use it immediately: “It is understandable that there will always be business customers who will want cars with individually selected, specific configurations , but we also see in our everyday life that many are quite simply ready to buy a car, as long as it has the basic functional needs and is available for immediate use. “Volkswagen T-Roc”, “Audi e-tron”, “Volkswagen Taigo”, “Audi A6″ – these are just some of the models that we can offer for purchase and immediate use. In general, we are ready if these changes lead to an increase in demand,” explains I. Gerkena.
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2023-06-28 11:23:29
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