Even though vehicle excise duties have been reduced, Croatian traffic experts believe that it will not increase the sale of new vehicles in the country. Moreover, they think that vast majority of people will still opt for used cars.
As from the 1st of January 2018, changes and amendments to the Motor Vehicles Excise Tax Act came into force, thus, Croatian citizens will have to pay less excise duty to the state when purchasing used vehicles, whilst the same regulation will apply to the purchase of new vehicles.
According to some estimates, this regulation should reduce duties toward the state for a few thousand Kunas. Instead of paying tax, Croats will be charged an administrative fee that will be calculated according to the age and strength of the vehicle.
The state also reduced excise duties for the purchase of a new vehicle in order to encourage citizens to opt for new cars. Therefore, for a car worth 120,000 Kunas, excise duties should be reduced up to 2,500 Kunas. However, despite all this, traffic experts believe that citizens will still not have money to buy new safer cars.
Since Croatia became a full member country of the European Union in 2013, imports of used cars from Germany and other European countries have significantly increased. The simplified procedure and smaller excise duties will lead to even bigger imports, experts believe.
‘’We will become a landfill of used cars. More than ten-year old diesel cars Germans massively export to Croatia, and many more are still to come, and that is not good’’, commented Željko Marušić, a traffic expert from Croatia.