Abstract

Reviewing the main taxes with regard to vehicle use and other state burdens, as well as the related EU and domestic regulations, certain proposals will be formulated for the development of the Hungarian vehicle tax system, which will enable more effective enforcement of climate targets while maintaining budget revenue targets. The proposals can be exemplary for other middle-income countries, such as Hungary, and for higher-income EU countries in terms of application to EU regulations. The proposed changes are important for environmental protection without causing any significant revenue, economic, social or other risks. It is important to evaluate these changes ex post and to consider even stronger commitments with an ex ante evaluation.

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