As we have informed you in our previous articles, the government has decided to permanently abolish the road tax for vehicles weighing less than 12 tonnes due to the abrupt increase in fuel prices. The newly approved amendment has also radically reduced the tax rate for heavy-duty vehicles. The amendment has also confirmed the general cancellation of the advance payment obligation during the tax period, so the tax obligation will always be payable on the basis of the submitted tax return. These changes result in significant savings for taxpayers, for whom it remains in effect for future years.

We would like to remind you that the obligation to pay advance payments of road tax in 2022 was already temporarily waived in March 2022 by a general pardon of the Minister of Finance. This measure is modified and extended by the amendment to the Road Tax Act, which entered into force on 1 July 2022 and, on the basis of transitional provisions, has retroactive effect from 1 January 2022.

As regards the cancellation of the obligation to make advance road tax payments, the amendment follows up on the general pardon of the Minister of Finance and has abolished this obligation completely not only for 2022, but also for the future. The cancellation of advance payments applies to all vehicles and all road tax payers, including vehicles over 12 tonnes. Compared to previous tax periods, quarterly advances will thus no longer be calculated and paid. Only the road tax return and the subsequent total payment will be required by 31 January of the following year.

The amendment also permanently codified the announced abolition of the road tax for passenger cars, including buses. Only trucks and their trailers of selected categories remain subject to the road tax. The vehicle category and other parameters affecting the tax are still governed by the vehicle registration book. 

Trucks and their trailers with maximum weight of 3.5 to 12 tonnes remain subject to the tax in principle, but the tax rate is now set at zero for them. From 2022, only operators of heavy trucks, tractors and trailers with a maximum permissible weight of 12 tonnes or more will effectively pay the road tax. However, even for these heavy vehicles, there is a significant reduction in tax liability due to a substantial reduction in tax rates. The specific amount of the tax and the relevant relief depends on the maximum permissible weight and the number of axles of the vehicle in question, but in all cases it is substantial. 

If you need help quantifying your road tax savings or any other related issues, please do not hesitate to contact your GT team or the authors of this article.  

Author: Lukáš Pflug, Jan Hafner