No tax on older vehicles in Latvia after all

Take note – story published 3 years ago

Transport Ministry (SM) said October 9 that the widely criticized idea of imposing a tax on old vehicles would be withdrawn.

LSM reported that with a view to preventing the registration of old and non-environmentally friendly cars in Latvia, it is planned to introduce the registration tax for passenger cars from 1 January 2021. The plans met with opposition from many ordinary motorists who resented the idea that they chose to drive older cars for any other reason than that they are the only ones most people can afford.

Prime Minister Krišjānis Kariņš (New Unity) has previously asked for a revision of the amendments to the Law, saying that the current offer does not provide a long-term benefit. directed by the Ministry of Transport (Transport Ministry), which provided for the taxation of passenger cars older than five years and registered in Latvia after being imported from foreign countries.

Karins stated at the government meeting that the proposed car registration tax will not be advanced with the budget package at present, but the Ministry of Transport, together with the Ministry of Environmental Protection and Regional Development and the Ministry of Finance, will have to revise the proposed car registration tax and introduce some compensation mechanism for more environmentally friendly cars. 

It should be discussed again in July next year, the Prime Minister said.


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