During today’s session, the Government of Serbia adopted a proposal for amendments to the section of the Tax on the Use, Holding and Carrying of Goods Act regarding the reduction of tax on motor vehicles with an engine volume of more than 2,000 cubic centimeters. .
“The changes have been proposed taking into account that the market value of passenger vehicles with an engine capacity of more than 2,000 cubic centimeters decreases faster based on age compared to other motor vehicles.” “In that regard, there was a need to implement the constitutional principle of taxation more consistently in relation to the economic power of taxpayers when taxing the use of motor vehicles,” the government said in a statement.
The said amendments have proposed to reduce the tax burden for those vehicles above the age of five to twenty, and the tax rates will be significantly lower than the existing ones.
According to the proposal, the tax deduction for vehicles older than five to eight, instead of the current 15 percent, will be 25 percent.
According to the attached table, registration for vehicles from this category whose engine capacity is from 2,001 to 2,500 cubic centimeters will cost 43,687 dinars, instead of the current 49,512 dinars.
Registering a vehicle with an engine capacity of 2,501 to 3,000 cubic meters will cost 88,530 dinars instead of the current 100,334 dinars.
Registering a vehicle with a volume of more than 3,000 cubic centimeters will cost 182,977 dinars instead of the current 207,374 dinars.
According to the proposal, the tax relief for vehicles from eight to 10 years old will be 40 percent instead of 25 percent, as it is now.
In that category, the owners of vehicles with a volume of 2,001 to 2,500 cubic centimeters will pay the registration in the amount of 34,950 dinars instead of 43,687 dinars as it stands now.
For vehicles with a volume of 2,501 to 3,000 cubic centimeters, registration will cost 70,824 dinars instead of the current 88,530 dinars.
Registration for vehicles with a volume of more than 3,000 cubic meters will cost 146,382 dinars, and now it costs 182,977 dinars.
The largest tax reduction has been postponed for vehicles older than 10 to 20 years, as it has been proposed to amount to 65 per cent instead of the existing 40 per cent.
According to the table, owners of vehicles with a volume of 2,001 to 2,500 cubic meters will pay 20,387 dinars instead of the current 34,950 dinars.
For vehicles with a volume of 2 501 to 3 000 cubic meters, the registration will amount to 41 314 dinars instead of the existing 70 824 dinars.
Nominally, the biggest reduction in the amount of registration will be for vehicles with a volume of more than 3,000 cubic meters, because registration will cost them 85,389 dinars, and now it costs 146,382 dinars.
No additional reduction has been proposed for vehicles older than 20, as 20 percent of the prescribed amount of tax is still paid for those vehicles, the government of Serbia announced.
It is explained that an additional reduction in the tax on vehicles older than 20 years can be seen as an incentive for its acquisition, which is not acceptable from the point of view of road safety and environmental protection.
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