Measures Planned to Prevent Car Price Hike

Total Croatia News

ZAGREB, October 4, 2018 – The government will do everything to find a solution which would prevent price hikes of new vehicles as of 2019 that could be caused by new, stricter standards for measuring carbon dioxide (CO2) emissions, Finance Minister Zdravko Marić said on Thursday.

Asked after the government session on Thursday to comment on warnings by the Croatian Chamber of Commerce (HGK) Division for Car and Car Part Sales that the price of cars could significantly increase next year due to new, stricter European standards of measuring CO2 emissions, Marić said the government would find a solution to that problem by the end of the year. He underscored the government would do everything to prevent car price hikes.

The HGK warned that stricter standards of measuring CO2 emissions, known as the WLTP protocol, would enter into force at the start of 2019, and replace the New European Driving Cycle (NEDC) after 20 years. Under conditions defined by EU law, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) laboratory test is used to measure fuel consumption and CO2 emissions from passenger cars, as well as their pollutant emissions.

The HGK says that the CO2 emission represents one of the factors used in car tax system taxes, which is why Croatia is facing a serious car price hike.

The HGK suggests that expenses, deduction and benefits (ATN/VAA) will be calculated with NEDC 2.0 data until 1 January 2020.

Foreseeing the hard transition period between the two test cycles, Europe has created another value, designed to soften the transition. Called NEDC 2.0, which is obtained from the WLTP value. It allows a reduction of the effect of increasing CO2 levels on the car tax system.

Marić said the government had in a way anticipated this situation and, led by a desire to make new cars more available, at the start of 2018 it reduced the special tax on vehicles.


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