Yesterday parliament, or rather the majority government, pushed through its legislative proposal that will see people charged a special tax when buying a new car. The scheme is yet another part of the so-called Consolidation package of the government, which should rake money in from just about every aspect of Slovak life, meaning most of the measures will be felt in the pockets of the people.
When buying a new car with an engine of over 80 kw, people will now have to cough up between EUR 167 and 3,000 extra to help plug the public finance deficit, with the government projecting to collect EUR 6.2 million from the registration fees this year and around EUR 29.3 million next year. Not a massive amount compared to the deficit or the amount of wastage taking place in state administration, but that is another matter.
Here is the tariff card: https://www.facebook.com/photo.php?fbid=10151154909132002&set=a.10150559591312002.405388.116488212001&type=1&theater
This system has been in the Netherlands for years and years already and although cars are much cheaper in Belgium and Germany (bordering countries for all ignorant English and American readers) it has never put a halt on sales in Holland itself.
If one buys a car in Germany, one has to pay taxes over it when imported into Holland. If it’s a second hand car, it’s by ratio. Once this tax (BPM) is paid it doesn’t have to be paid again when somebody else buys the car.
Then plan in itself isn’t bad since the people affected can pay it (bigger cars means generally deeper pockets). I’m just afraid that Matt is touching the truth when he comment that it will lead to bigger bureaucracy which has to be paid by this tax.
If everyone crosses the border to buy a new car, then they will just get you on taxes when you register the car in SVK. Hence making a whole new administration to handle it. So then they will raise taxes on something in order to pay for a whole new useless bureaucracy that is incapable of talking to the other useless bureaucracies.
The NET gain to the country after paying the legions of non-jobs to administer this will be ZERO – meanwhile new car sales will nose dive, production and jobs may be cut but Bobby will be on target to fund his socialist (sic) dream!
Cross the border and buy it cheaper there perhaps …DOH !?!