Prime Minister asks for review of older vehicle tax in Latvia

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Prime Minister Krišjānis Kariņš (New Unity) has asked for a review of amendments to the Law which provided for the taxation of cars older than five years, LETA reported October 8.

Kariņš raised the issue of these amendments at the meeting of coalition parties on Thursday, stressing that the Transport Ministry, together with the Ministry of Environment and Regional Development and the Ministry of Finance, will have to revise the proposed car registration tax and propose a new solution.

“There must be an incentive mechanism with long-term benefits for the environment and society. The current offer does not provide it,” said the politician on Twitter.

Transport Ministry could push forward amendments to the emergency government meeting on Friday, which would repeal the arrangements previously provided for.

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. However, 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.

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