New Car Tax in Slovenia: Care for the Environment or Replenishment of Budget?

Owners of old cars that are harmful to the environment will pay a new tax. Its rate will be from 25 to 141 euros per year.

Old cars have long been a serious problem in Slovenia. In spite of the fact that the Government disposes of them for free, only 20% of such cars enter official disposal points. Annually, Slovenia recycles 6,500 worn out cars, while their real number is estimated to be 30–40 thousand units.

The majority of such cars are on the “grey” (and “black”) market. As a rule, their owners sell cars to dealers for a certain amount of money. As a result, about 10,000 worn out cars are exported from Slovenia to the south and are outside the EU, in the Balkan countries, where further exploitation of such vehicles is not prohibited. About 20,000 old cars leave Slovenia every year across the eastern border. They are purchased by the collectors of spare parts and raw materials (metal parts, glass, cables, and plastic parts).

The car contains many dangerous metals and substances (lead, mercury, cadmium, chrome, oil, anti-freeze, brake fluid, gasoline) that make the abandoned vehicle dangerous to the environment.

Who Will Pay Tax on Car Disposal?

The new tax will have to be paid by every last owner of the “iron horse” who did not take care of his legal disposal in time and did not deliver it to 1 of the 17 reception points.

The new tax is designed to stop the practice when citizens throw their old cars in parking lots, in the woods, at illegal car dismantling points, or sell them to persons engaged in the illegal sale of raw materials and spare parts.

It is assumed that the new law will enter into force early next year.

The new fee will apply to:

  1. vehicles with a capacity of up to 8 people,
  2. trucks up to 3.5 tons of maximum permissible weight, and
  3. mopeds and tricycles, which speed does not exceed 45 km/h, and the motor capacity is less than 50 cm3;
  4. its estimated size will be 25% of the current annual fee for the use of vehicles, but at the same time not less than 25 euros.

This means that the new fee for worn-out vehicles will be as follows:

  1. up to 1.800 cm3 – 25 euros,
  2. 1,800–2,500 cm3 – 38.3 euros,
  3. 2,500–3,000 cm3 – 70 euros,
  4. 3,000–4,000 cm3 – 113 euros,
  5. from 4,000 cm3 – 141.3 euros.

For comparison: on the website it is possible to buy a car produced in 1995–2000 for 100 euros. The vehicles with a built-in electric drive will cost 25 euros (passenger and freight types) or 20 euros (mopeds and tricycles). The payment obligation will first come into force a year after the car is removed from the register and will be applicable annually until its owner proves that it has been disposed. The only alternative is to pay a recycling fee of 500 euros.

Official representatives of automotive brands on the Slovenian market pay the disposal of worn-out cars, according to the EU regulations.

According to preliminary estimates, the introduction of a new tax will replenish the treasury by several hundred thousand euros. The lion’s share of these funds will go to improve IT solutions for organizing a fund-raising system (100,000). For these purposes, the Ministry of Transport will hire two specialists who will manage the budget of 50,000 euros per year.