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New Law Nearly Doubles Tax on Old Diesel Cars, Making Inevitable Jump to 78%

A new law could almost double the tax on old diesel cars. When applying it, municipalities will have to add a completely different component to the tax calculation, which makes an inevitable jump to 78%.

It is a question of the draft of a completely new Law for the Promotion of Electric Mobility prepared by the Ministry of Innovation and Growth, which is about to be uploaded for public discussion, writes “Trud”.

If until now the Law on Local Taxes and Fees equates the tax rate for cars regardless of fuel, then with the changes prepared by the “Denkov-Gabriel” cabinet, diesel owners will pay much more. Currently, the tax for passenger cars is determined by two components – property (which takes into account the year of production and engine power) and environmental (which depends on the harmful gases emitted into the atmosphere).

In practice the changes introduce a third component – the type of fuel used. According to the exported data, the owners of the old diesel cars will be hit the hardest.

It is written in the project that the ecological coefficient for the oldest cars (over 20 years old or more), which do not have an ecological category or meet the Euro 1 standard, should be increased as follows – for gasoline cars between 1.40 and 1.80 , and for diesel – from 1.80 to 2.50. Currently, the marginal rate allowed by law is 1.40 for both types.

At the moment in Plovdiv for a standard mid-range car, manufactured in 2002 (a large part of the car fleet under the hills falls precisely in this category) and with a power of 82 kilowatts and ecocategory Euro 1, the tax due will be BGN 160.74.

If we apply the new formula, the tax for a similar gasoline model will already be nearly 28.56 percent more, or BGN 209.65. The jump is even greater if the example car has a diesel engine. With it, if we assume that the local administration will choose the maximum coefficient (2.50), the increase will reach 78.57%.

In numerical terms, this means BGN 282.21, or as much as BGN 121.47 more for tax on a 20-year-old diesel in Plovdiv.

According to the new draft law, gasoline cars up to 15 years of age, which have the Euro 3 category, are a kind of watershed. All vehicles covering or surpassing these specifications will not be subject to additional increases to the existing rate. However, Euro 3 for diesel will bring a potential jump of up to 36 percent, compared to the current prices of vehicle tax under the hills.

This can lead to a situation where a 16-year-old gasoline car with Euro 3 is paid several times less than for a brand new diesel with Euro 6.

The purpose of the future Law to promote electric mobility is on the one hand to create incentives for the purchase of electric vehicles, but on the other hand – to create a tool to limit the purchase of diesel cars, which are currently the main share of the car fleet in the country, including in Plovdiv. The positions of the interested branch organizations and businesses, as well as the citizens, regarding the new texts are yet to become clear.

2024-01-22 15:10:00


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