Radical proposals to overhaul the Polish car tax system could threaten the stability of residual values.
Under the current tax system, the annual rate of vehicle excise duty is based on engine size and the value of the vehicle declared by the owner, rather than its actual value.
Owners tend to understate the actual value of their vehicles to keep taxes low.
The proposals intend to end this practice by introducing a new system that uses engine size and the car’s year of production as the basis for tax calculations. An environmental element would also be introduced, based on European standards, such as whether a vehicle is Euro 6 compliant.
As a result, cars will be taxed more accurately, which could mean tax rises for some models, which in turn could harm their residual values as they become less popular. The new tax is expected to have the most impact on premium and imported models.
There will potentially be a cascade effect, as falling residual values for older, larger premium brands would push down values for smaller models in a brand’s range.
The proposals are currently being reviewed by the Polish senate, but require the approval of both houses of parliament to become law.
Our regular automotive industry News & Insights are no longer being published on the Autovista Group Market Reports website.
Instead, you can now find the latest updates at our central Autovista Group website, home to our pan-European brands including Autovista, Eurotax, Glass's and Schwacke.
To stay up to date with rapidly changing market trends, we recommend signing up to our free Autovista Group Daily Brief which delivers our daily news stories directly to your inbox.
You can still find our in depth market reports here on the Autovista Group Market Reports site. Keep checking back as we have an exciting new report due to be launched shortly!