The Ministry of Finance, in its response to the text "Lower sales tax, but more expensive registration", again failed to prove that something in the texts of "Vijesti" regarding the Fiscal Strategy Draft was incorrect.
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"Vijesti" wrote in this text that the Government plans to increase the amount of the annual tax on the use of vehicles, which is paid with each registration.
In response, the Ministry states that "the claims that the tax on the use of passenger motor vehicles will increase the price of vehicle registration are incorrect," because "the state does not intend to increase the amount of that tax for motor vehicles used by a large number of citizens, and that the subject of consideration will be only luxury categories of vehicles and vessels". So now costs will increase, but "not for a large number of citizens". What is incorrect?
"Vijesti" in the text, to which the Ministry is reacting, stated what is written in the strategy that "the intention of the Ministry of Finance is to establish a taxation system that will change the criteria for taxation and provide a greater tax balance among the categories of vehicles that are subject to taxation, with a special reference to the taxation of the use of vessels", as well as that the goals of the changes are a fairer system of taxation and an increase in budget revenues.
Nowhere in the Strategy Draft is there any mention of taxing only luxury vehicles, as they now claim, nor what is a luxury vehicle - whether it is over 2.000 cubic meters or over 5.000 cubic meters. Nothing should surprise us, given that the same Ministry previously introduced additional duties on fuel claiming that it is also a luxury.
Goran Kapor
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