Government incentives for owners of eco-friendly cars in 2020

Several Serbian MPs have launched an initiative for the government granting subsidies and incentives for the purchase of electric, hybrid and plug-in vehicles.

The government now has to find a financing format that would support the purchase of eco-friendly cars but not burden the state budget too much.

According to one option, buyers of eco-friendly vehicles would still be paying the customs fee and the VAT, but the state would stimulate the purchase with discounts.

“The idea is to enable a cheaper purchase of clean technology vehicles through things like eco-fees, but also by withdrawing money from the EU funds meant for this purpose. The proposal is for a regulation to be passed as soon as possible, presumably by the end of the year, so that it would come into effect in 2020 and remain in effect for the next five years,” says a source from the Serbian National Parliament.

The Serbian Environment Minister, Goran Trivan said that the first order of business should be banning the import of old used vehicles and then think about subsidies for the purchase of eco-vehicles.

“It remains to be seen whether this ban will be applicable to the vehicles that are between 10 and 15 years old. The purchase of electric vehicles should then be stimulated through subsidies, but also through other incentives, lower taxes, free parking and similar features,” Trivan added. 

“Considering that the World Health Organization has warned that, each year, about 5,000 people in Serbia die due to air pollution, there is no doubt that we have to do something about it, and that whatever we do, it has to be done quickly,” Trivan said.

The Serbian Transport Minister, Zorana Mihajlovic has also mentioned a possibility of the government introducing subsidies for eco-friendly vehicles.

Milos Petrovic, the president of the Serbian Association of Importers of New Vehicles, says that the simplest thing to do would be to implement eco-fees per the amount of pollution. If, for example, there were a fee of RSD 12,000 per tonne (currently paid only by the buyers of new vehicles) for people who import used cars, that would generate at least EUR 12 million more for the state budget each year.

(Vecernje Novosti, 15.04.2019)



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