Page 10 - [Tieng Anh 2023] Ky 4

REVIEW of FINANCE - Issue 4, 2023
road tax ranging from 20 to 300 Euros/year depending the ELV to a collection and recycling facility, they will
on horsepower, vehicle type and place of registration. receive a recycling fee along with a subsidy to buy a new
The final owner is informed on the manufacturer's car (based on the value of the old car).
website and/or the Transport Authority's website In Norway, since 1978, a recycling fee has been applied
about the collection facilities nearest to their home. when the owner purchases or registers a new vehicle and
In Portugal, since 2007, car owners pay road tax the fee is 190 Euros/vehicle. Revenue from the fee is paid
from 30 to 1,000 Euros/year depending on the type to the Norwegian Customs and Excise Authority. The
of vehicle (based on 04 criteria: vehicle capacity, fuel recycling fee will be refunded when the vehicle is finally
type, CO2 emissions, age). In the Netherlands, since disposed of by the owner.
1994, road tax rates range from 150 to 6,500 Euros/year Taiwan's case is quite distinct, recycling fees are paid
depending on vehicle weight and fuel type. In Ireland, by manufacturers and importers of recyclable vehicles
for vehicles purchased before July 2008, road tax and paid into the Recycling Fund to subsidize official
applies on a vehicle engine basis, however for vehicles collection and recycling facilities. The recycling fee for cars
purchased after July 2008, road tax applies according in general is 3,800 yuan/vehicle, for cars designed under
to the vehicle's CO2 emissions. and tax rates from 120 the Green Point Program the fee is 2,700 yuan/vehicle, for
to 2,350 Euros/year. motorbikes in general the fee is 800 yuan/vehicle and for
Insurance premium motorbikes designed under the Green Point Program is
Insurance premium is one of the very important fees 650 yuan/vehicle (Chen, Huang & Lian, 2010).
because it is related to the buyer's car ownership. Insurers Penalty fee
play an important role in encouraging the implementation In the Netherlands, official ELV collection facilities will
of collection and recycling programs. In the Netherlands, be inspected by the Vehicle Registration Authority once a
insurance premiums depend on the value of the vehicle, year and during the inspection process, 5% of the vehicles
vehicle weight, owner's place of residence and insurance will be randomly inspected. Illegal ELV repossession
claimant history. Fees range from 300 Euros up to several facilities are subject to imprisonment or administrative
thousand Euros/year. fines of up to 10,000 Euros. If there is a vehicle on the
Recycling fee road while the owner has removed the registration, the
In the Netherlands, from May 1 , 2021, the recycling fine for the owner is equivalent to 3 months of road
st
fee is a mandatory amount that car owners must pay once tax. Failure to pay could result in a fine of 400 Euros or
which is added to the purchase price of a new car when imprisonment. Insurers cooperate with ELV collection
first registered. From January 1 , 2023, the recycling fee and recycling facilities (through private contracts) to
st
applies at 22.5 Euros (VAT included)/vehicle (previously implement control measures and check whether ELVs are
the fee was 25 Euros/vehicle in 2022 and 30 Euros/vehicle actually processed or not. If ELV collection and recycling
in 2021). Revenue from recycling fees is transferred facilities do not comply with this procedure, they will be
to a single intermediary organization (Autorecycling fined 50,000 Euros. In case the car owner does not pay
Nederland - ARN) in the Netherlands to be used for the insurance premiums and the car is not inspected for
vehicle recycling in high standards. roadworthiness, the fine ranges from 60 to 400 Euros, and
In Japan, according to the Recycling Law issued even imprisonment.
on July 5 , 2002, effective from January 1 , 2005, the In the Czech Republic, if the last owner does not pay
st
th
recycling fee is a mandatory fee that the vehicle owner is the insurance premium and does not provide a certificate
the first to pay in the system nationwide and are paid into of destruction to cancel the vehicle registration, there
the Recycling Fund managed by the Japan Automobile will be a fine of about 1,950 Euros. If a vehicle is still on
Recycling Promotion Center (JARC) (established in 2000) the road while its owner has canceled its registration,
and the Japan Automotive Recyclers Alliance (JARP). The the fine for the owner is about 400 Euros. The sale of
recycling fee for mini and compact cars ranges from about spare parts is completely prohibited in the Czech
50 to 100 Euros per vehicle with an engine of 2,000 cc or Republic, and if there is a violation, there will be a fine
less. For cars with engines over 2,000 cc, the recycling fee of up to 2,000,000 Euros. In Korea, when disposing of a
ranges from 91 to 163 Euros/vehicle. However, recycling vehicle, the owner needs to take the vehicle to an official
fees in Japan are not added to the car price but must be collection facility and register for destruction. Failure
paid separately at the time of purchase. So when a person to do so will result in a fine of 500,000 KRW (about 347
buys a vehicle (whether new or used), they have to pay Euros). In Taiwan, if the owner keeps expired car but
recycling fees as the potential final owner. Owners who does not use it, he/she will have to pay nearly 16,000
purchased their vehicle before January 1 , 2005 must NT dollars (about 482 Euros) annually in fuel taxes,
st
pay a recycling fee when the vehicle is first inspected for registration fees and fines for not regularly testing the
roadworthiness or when they decide to dispose of the car for road-readiness. If an ELV is reported as taking up
vehicle. In the case of rented cars, the rental company traffic space, the owner will not be able to claim excise
must pay a recycling fee. When the final owner surrenders duty relief or any recycling allowance.

9