2. Status quo
CO2 emissions Tax rate of the taxable amount by fuel type (%)
(g/km) Petrol and Natural Gas Diesel
0 to 110 0,5 1
110 to 120 1 2
120 to 130 1,5 3
130 to 150 3 6
150 to 170 6 11
170 to 190 9 15
190 to 210 13 18
210 to 230 18 22
230 to 250 23 26
above 250 28 31
3. Reform: Double tax rates
(long run: quadruple)
Petrol
120
100
80
Tax rate (%)
60
Tax rate (%) now
Tax rate (%) double
40 Tax rate (%) quadruple
20
0
0 to 110 110 to 120 120 to 130 130 to 150 150 to 170 170 to 190 190 to 210 210 to 230 230 to 250 above 250
CO2 emissions
(g/km)
4. Economic aspects
• Less (expensive) cars have to be imported
which frees money for domestic consumption
• Lower fuel consumption means less oil
imports which again frees money for domestic
consumption
5. Social Aspects
• Low-emitting cars are often small and low-
priced (purchase + fuel costs), the additional
tax is marginal
• High-emitting cars are typically larger and
more expensive, the tax increase is substantial
• Car-based mobility is still affordable
• Reducing CO2 emissions now means giving
more opportunities to future generations
6. Environmental aspects
• Lower CO2 emissions
• Less air pollution
• Less resource consumption
• Less pressure to build new streets (land use)
7. Best practice – Ireland
Policy interventions improved fuel economy
Newly registered private cars
For comparison:
The average fuel
economy in Slovenia
was 7.2 (petrol) and
6.6 (diesel) in 2010
