Skopje, 17 October 2023 (MIA) – At a session Tuesday, the Government adopted amendments to the Decree on Calculating Motor Vehicles Tax and the Amount Necessary for Calculating the Motor Vehicles Tax due to the need of a new methodology for the calculation of emissions from motor vehicles, aimed at protecting the environment, fulfilling the commitments of the Paris Climate Accords, as well as aligning with the latest EU standards, said the Ministry of Finance in a press release.

The new methodology is based on measurements of CO2 emissions in a realistic environment, and, according to the Ministry, it enables a more direct link between the Motor Vehicles Tax and the negative externalities caused by CO2 emissions from motor vehicles. 

The Ministry said the new methodology, which is based on measurements of CO2 emissions in a realistic environment, represents a globally harmonized procedure for the measurement of CO2 emissions from motor vehicles and is used in the European Union for all newly produced vehicles since 2022. “It enables a more direct link between the Motor Vehicles Tax and the negative externalities caused by CO2 emissions from motor vehicles,” said the Ministry.

In the press release, the Ministry said the new methodology enables passenger motor vehicles to be appropriately taxed, in line with their average CO2 emission values stated on the vehicles’ European Certificate of Conformity using the WLTP method.

According to the Ministry, the implementation of coefficients for the calculation of the specific component of CO2 for the Motor Vehicles Tax enables greater taxation of vehicles that pollute the most and are a part of the category of luxury passenger vehicles or very old vehicles, which are the least environmentally friendly. 

The Ministry said the goal is to encourage citizens and businesses to invest in vehicles which meet higher environmental standards, regardless of whether they are new or used, and by doing so contribute to the decarbonization of transportation in the country, as well as the reduction of air pollution.

“Based on the Customs Administration’s data on the import of passenger vehicles, the new Decree won’t have a negative financial impact on people who are purchasing new vehicles except for those vehicles that are classed as luxury or premium vehicles,” said the Ministry.

In terms of used passenger vehicles, the Ministry said a negative financial impact can only be noted for more luxurious vehicles, as well as for very old vehicles.

According to the Finance Ministry the drafting process of the amendments to the Decree was led in a transparent and inclusive way, with consultations with the representatives of the Economic Chambers in the country, who, said the press release, “voiced support for the adoption of the new Decree and the required values for the calculation of Motor Vehicle Tax.”