New EU Law Raises Car Prices, Particularly Those Most Popular With Croatian Buyers?

Could a new EU law have a negative effect on Croatia's drivers?

SDP's Saša Đujić warned of a potential problem with excise duties during a debate on the Croatian position on the potentially discouraging new EU regulation.

As Poslovni Dnevnik writes on the 18th of May, 2018, some of the European Union's new rules could significantly raise the prices of new cars in Croatia, and according to a report from Novi List, those that Croatia's residents purchase the most could be the ones facing the most significant of price hikes.

The reason for this is of course to do with CO2 emissions and their measuring, and excise taxes will be calculated and based on these emissions and their subsequent calculations. Members of the Parliamentary Committee for Maritime Affairs, Transport and Infrastructure therefore sent a letter to the Ministry of Finance at the very beginning of this month.

In its letter, the message was sent that due to the changes of the methodology for the calculation of CO2 emissions, the price of passenger cars will increase, which will ultimately discourage Croatian citizens from purchasing new passenger cars and negatively affect the security of road traffic.

Accordingly, a request has also been submitted to the Ministry of Finance requesting that the tax administration harmonise excise duties so as not to increase the prices of new personal vehicles, and especially those most commonly purchased and then subsequently driven on Croatian roads across the country.

The letter then asks that the recipient properly considers the problem, suggests a suitable solution, and then delivers on it, adding that movement on this issue is expected as soon as possible.

The conclusion of the committee's session saw a warning about the possibility of hiring personal vehicles issued, because the ''motor vehicle taxation system is classified into tax categories and based on CO2 emissions". It was also made clear that there is no opposition to the proposal for new EU regulation, a topic which has been being discussed and which should contribute to the reduction of harmful emissions, an undoubtedly positive thing - but that the only concern is the excise duty.

During a debate on the issue, SDP's Saša Đujić warned that the stricter [means of] measurement means that all cars will have more CO2 emissions, and that the lowest class of car will emit the most emissions, leading to a price hike. Đujić expects the Ministry of Finance to correct the classes to make vehicles and the new measurements so they're at the same level. If that is done, then "there's no cost," SDP's MP said on Thursday, as in that way, "excise duties would remain the same as they were before".

The Customs Administration has confirmed that they have received a letter from the Parliamentary Committee and that a response to it is currently being prepared.