Another 70 (!) million will be charged to motorists
As soon as the Riga City Council elections passed, the ruling coalition suddenly had no problem agreeing on a new tax on used cars. This is a nasty plan lobbied by the new car dealers. As ministers themselves and their enoutages continue to drive in comfortable business-class cars with three-liter internal combustion engines for taxpayers' money, people are being asked to switch to new cars with microscopic or electric engines in the name of the climate.
Formal amendments to the Law on the Vehicle Operation Tax and Company Car Tax are made with the aim of “preventing the registration of old and ecologically harmful passenger cars in Latvia”. But in reality, it has nothing to do with concern for the climate. The goal is solely to collect more money in the state budget, at the same time supporting from the expensive business of your dear friends.
Once a car has passed the roadworthiness test, it is in working order, and there has been no revolution in the world's internal combustion engines in recent decades. So a newer engine does not automatically mean better. As for electric cars, for which the government promises zero tax, their performance has not increased significantly, but the price remains at levels below the average income level. This means that taxing used cars at a higher rate is unlikely to change the situation in the car market in particular, as there is no sensible alternative to a used internal combustion engine, but it will cause significant damage to household budget.