THE TAX on motor vehicles should decrease and unify, so that it equals the lowest currently set tax rate, according to a proposal introduced by the Finance Ministry. The aim of the change is to impose fairer rules for taxing motor vehicles in Slovakia, the SITA newswire reported on July 7.

Currently, the self-governing regions set their own rates and decide on tax relief and decreases, which means that the tax differs from region to region.

“This, according to the business representatives, creates a relatively unclear situation and uneven conditions for business-making in particular self-governing regions,” the Finance Ministry claimed, as quoted by SITA.

Moreover, the levy is a form of income for the regional budgets.

Under the proposed rules, the tax will instead to go the state budget. Moreover, the government will be responsible for changing the rates via governmental regulation. The municipalities will receive compensation for the lost tax, through changing their share of the income tax. The system of paying the motor vehicles tax will remain the same, as well as the method of submitting the tax returns, SITA wrote.

The proposed changes will affect only motor vehicles used for business. It will take into consideration ecological vehicles, with the tax rates and relief for these cars set directly in the law. The ministry also proposes to extend the list of things for which businesspeople do not pay taxes. This includes relief for public buses, and vehicles used by rescue services or in agriculture, as reported by SITA.

If passed by the full parliament, the new rules may go into effect as of January 1, 2015.

Source: SITA

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.