Economy Minister seeks extra €33.2 million for car scrapping

The Economy Ministry has recommended that the government consider increasing its financial support for replacement of old cars with new ones - the so-called scrapping contribution, the TASR newswire wrote.

The Economy Ministry has recommended that the government consider increasing its financial support for replacement of old cars with new ones - the so-called scrapping contribution, the TASR newswire wrote.

The ministry’s report states that the unexpectedly high interest of people in this program means that it is realistic to assume that 22,130 cars will be scrapped by March 26. In financial terms, this means that the entire €33.2 million authorised by the government will be spent by that day.

“The Economy Ministry proposes that the financial subsidy be increased by another €33.2 million,” reads the statement. The document is not on the government’s programme of discussions yet, but the report urges that it is necessary to decide whether the process of support will continue or will be ended on March 26.

The scrap yard contribution has been in effect in Slovakia since March 9. The basic state support is for €1,000, but if the new car seller provides another €500, the state adds another €500 donation, bringing the total to €2,000.

The maximum value of a new car on which people may ask for support is €25,000. According to Economy Minister Ľubomír Jahnátek, the scrap yard contribution will be more effective if more EU countries take part.

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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