The Road Fund Will Lose Millions: Changes to Vignettes Will Impact Road Reconstruction 0

Politics
BB.LV
The Road Fund Will Lose Millions: Changes to Vignettes Will Impact Road Reconstruction
Photo: LETA

If the currently proposed changes to the law on road usage fees are made, including the extension of the exemption period for farmers from this fee, approximately 3.9 million euros will be lacking for road reconstruction, said Minister of Transport Aitis Shvinka ("Progressives") in an interview with Latvian Radio on Thursday.

He explained that the revenues from vignettes are directed towards the restoration of specific sections of roads, including the Liepaja highway, the section of the Jelgava highway near Olaine, as well as the restoration of the Tinuzi-Koknese road in several segments.

According to the annotation to the amendments to the law on road usage fees, the goal of the changes included in the law is to achieve an income of 58.785 million euros per year.

Accordingly, according to Shvinka, the implementation of the planned amendments, including the extension of the exemption period for farmers from fees, will lead to a deficit of 3.9 million euros.

"Yes, this creates a financial impact of up to 3.9 million euros. I have already talked to the Ministry of Finance. We are looking for other sources to compensate for this impact," Shvinka said.

In response to a question about why the annotation states that there were no objections or suggestions regarding the draft amendments, although there were, the minister explained that it was a technical error.

When asked whether the amendments were agreed upon with the Ministry of Agriculture, Shvinka replied that it was difficult for him to say, but added that the ministry sends changes for approval to other ministries.

LETA has already reported that the Saeima adopted amendments to the law on road usage fees on December 3, according to which from January 1 of the next year, most rates for road usage fees (vignettes) for freight transport over three tons will be increased.

The Ministry of Transport previously explained to LETA that only freight vehicles with a total weight of 3.001 tons moving on European significance roads (TEN-T), mainly transit ones, are required to pay the road usage fee. The law stipulates that from January 1 of the next year, the rate will depend on the weight of the truck, the number of axles, and the emission class. For example, for commercial vehicles in category N1 weighing from 3.001 to 3.5 tons with "Euro VI" engines, the annual vignette fee will increase from 260 to 360 euros, and the daily fee will rise from five to seven euros.

The ministry emphasizes that obtaining a vignette is mandatory for trucks over three tons moving on main and regional roads designated as toll roads, as well as on TEN-T sections, roads near border crossings, and ports.

At the same time, as before, vignettes will not be required for trucks that do not use the specified roads, for example, for farms transporting goods for their own needs or in the immediate vicinity, as stipulated by the changes in the law.

The law also stipulates that vignettes will not be required for vehicles heavier than three tons if they are not registered as freight vehicles. For example, family cars with seven seats. As before, during the harvest season, farmers who have registered their vehicles with the Rural Support Service (LAD) are exempt from road usage fees.

The ministry also emphasizes that vignettes, as before, will not be required for freight vehicles with a total weight of up to three tons, such as "Citroen Berlingo," "Opel Combo," and others. Currently, about 45,000 such vehicles are registered in Latvia.

The amendments to the law also provide for changes to the list of roads. They propose that the fee will apply to all sections of roads leading to the border checkpoints of Terekhovo, Grebnevo, and Paternieki, to ensure the legal application of the fee along the entire route to the border. An expanded network of regional roads parallel to the main state highways or leading to ports is also planned to be included.

Considering various needs, vignettes will be available for purchase for different periods — a day, a week, a month, nine months, and a year, depending on the frequency of vehicle use.

It was also reported that opposition deputies from the "United List" submitted amendments to the law, calling for the cancellation of the road usage fee for commercial vehicles from 3.01 to 3.5 tons and for softening the increase in vignette rates. In their opinion, this decision harms the economy and contributes to inflation.

Shvinka reported that the Ministry of Transport will propose extending the exemption period for farmers from road usage fees. Currently, the law stipulates that farmers who have registered their vehicles with LAD are exempt from fees during the harvest season — from July 10 to September 30. The minister proposes to establish the exemption from March 1 to November 30.

At the same time, the minister stated that he would promote amendments providing support for large families and returnees in the transport segment from three to 3.5 tons, offering a 50% discount on one truck owned by the family.

The President of Latvia, Edgars Rinkēvičs, called on the Saeima to reconsider the law increasing road usage fees for freight transport.

Redaction BB.LV
0
0
0
0
0
0

Leave a comment

READ ALSO