ENVIRONMENTAL POLICY IN CAR TAXATION

Abstract

This article monitors situation of environmental aspect related to taxation of buying a passenger car. First we distinguish an environmental car from less eco-friendly vehicles with focusing on importance of electricity in modern vehicles. Nowadays, implementation of electricity dominates in technological trends, which are used by car makers for reducing of emissions. Cars with lower are required because of environmental taxes, which are mainly oriented on passenger cars. These taxes are usually based on level of emissions of car and can motivate people to buying an environmentally friendly car. Besides these special taxes some countries use subsidies to convince people to buy for example batter electric vehicle. These instruments (especially taxes and subsidies) related to buying a new car used by chosen EU countries monitors the main part of article.