The Budget and Finance (Tax) Commission of the Saeima on Wednesday supported, in the second and final reading, amendments to the law on the vehicle operation tax and the tax on passenger cars for businesses, according to which there will be no need to surrender license plates when temporarily suspending a vehicle's registration, LETA reports.
The bill was considered on an urgent basis.
According to the Ministry of Finance, the amendments approved by the government will reduce administrative burdens and make processes related to the suspension of vehicle registrations more convenient and transparent.
The bill provides for the cancellation of the requirement to surrender license plates when temporarily suspending a vehicle's registration. In the future, this procedure will take place electronically, and the Road Traffic Safety Directorate (CSDD) will provide the service without the need for physical surrender of license plates.
The planned changes are based on previously adopted Cabinet rules, according to which, starting from November 1, 2025, the suspension of vehicle registration will occur in an electronic format without the surrender of license plates.
The Ministry of Finance explains that these changes comply with the requirements of the law on mandatory insurance for civil liability of owners of land vehicles and are necessary for the law's entry into force to coincide with changes in the relevant regulations.
Also, as one of the exceptions from the objects of taxation under the vehicle operation tax, an electric scooter will be defined.
In addition, a new exemption from the tax on passenger cars for businesses is planned. It will apply to vehicle dealers for a period of two months for passenger cars up to ten years old intended for sale, upon their initial registration in Latvia.
Currently, the law on the vehicle operation tax and the tax on passenger cars for businesses provides for a tax exemption for persons with disabilities concerning passenger cars of category M1, motorcycles, tricycles, and quadricycles. The commission supported the Ministry of Finance's proposal in the second reading to extend this exemption to vehicles of category N1 — light trucks with a total weight of up to 3,500 kilograms used by persons with disabilities.
The Budget Commission also supported the Ministry of Finance's proposal to introduce a new type of exemption from the vehicle operation tax for families with persons with disabilities of group I or II who have been assigned a guardian by the Guardianship Authority. This exemption is expected to come into effect on January 1 of the following year.
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