Owners of highly polluting cars to cough up more dough

The Transport Ministry has offered upping the annual vehicle operating tax for 'dirtier' vehicles to incentivize choosing greener cars, Tālivalds Vectirāns of the ministry told Latvian Radio. Currently older cars in Latvia are taxed based solely on weight, while newer cars are taxed taking into account the total weight, engine volume and engine maximum power, Rus.lsm.lv reported.

Taxes for operating cleaner cars will see taxes lowered but taxes will rise for luxury cars and dirtier cars.

Furthermore, the Transport Ministry plans on scrapping the registration tax that's paid upon registering a car in Latvia. That's why the price of import cars will shrink some €300 to €800, said Vectirāns.
While the annual vehicle operating tax is to be set, based on the volume of emissions. Dirtier cars will mean larger taxes, said Vectirāns.

The state will continue to tax vehicles older than 2005 based on the car's weight, while cars made from 2005 to 2009 will be taxed as currently, based on the engine volume and maximum power.

Cars with CO2 emissions over 350 g/km could be taxed annually with €756 and cars with CO2 emissions of 300 to 350 g/km are to be taxed with €562.

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