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From January 1, lower excise duties on cheaper cars

Today, the Ministry of Finance will present proposals for the Excise Duty Act and the Special Tax on Motor Vehicles Act, with Finance Minister Slavko Linić also attending the conference.

Let us recall that Linić announced a week ago that from January 1, the excise duty system will be aligned with the excise duties in EU countries. After we become part of the single market upon joining the EU, the battle for VAT collection begins. If excise duties increase here, the customer will go to a neighboring country, as there are no longer any customs barriers, Linić warned last week.

Excise duties on cars are also changing in accordance with European directives that place greater emphasis on ecology. Excise duties for old cars will be abolished, while for new cars, they will be calculated based on value and carbon dioxide emissions. This means that excise duties will increase for larger and more expensive cars, while they will decrease for smaller cars valued up to 150,000 – 200,000 kuna.