Green tax: what should drivers know?

Google car
AP / Scanpix

As of July 2020, Lithuania has started imposing the green tax that will be levied on older cars. Lithuanians are far from happy with the new tax, considering that they tend to purchase cars of older makes which are categorized as harmful to the environment.

While taking care of nature and the environment is very important, the sad thing is that it seems to be done at the cost of those who are simply trying to save some money. After all, old cars are hardly the cars anyone would dream of driving, and the majority of people who purchase them do not have that many choices.

Lithuanians try to circumvent the laws.

An alternative exists to the green tax. Its goal is to help people get rid of low-quality cars and purchase the ones which would allow them to enjoy the comfort of a new car without harming the environment. For this purpose, a compensation of 1000 euro is given in 2020. Upon agreeing to junk their old car and remove it from the register, the owner receives a compensation of 1000 euro for the purchase of a new car, subject to certain terms and conditions.

The compensation is not a viable choice for everyone as it does not cover all the expenses of purchasing a new car. The buyer still needs to pay a certain amount from either personal savings or a taken loan.

Lithuanians are always looking for new ways to save money and have thus started selling cars to foreigners. While they might pay less, the taxes are not levied, which pays off in the long run.

Does this seem a tad bit too complex?

The green tax and the related compensation raise many questions to some people. They have difficulties understanding what documents must be prepared to get all the benefits they are entitled to. Of course, the best choice is to cooperate with professionals like who are proficient and know all the details of such transactions. This way one can avoid worrying over trivial matters and be sure that everything will be handled well.

In this case, salvage dealers seem to be a viable choice as they collect the car, handle it properly and prepare the required documents to be eligible for the 1000 euro compensation. In case of having little time, it is best not to handle the documentation personally because it is very easy to miss certain details that are necessary to later receive the compensation.

The most important thing is to not rush in and pay attention to all the aspects of such transactions. If done carefully, the law might actually seem beneficial and the possibilities it grants quite worth one’s time.

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