Following the news that the Government of the Republic of Serbia adopted a regulation on subsidizing the purchase of electric vehicles in 2024 on February 1st, with the application process starting on February 12th, the Serbian Association of Vehicle and Parts Importers explored the air protection programs in the countries in the region, whether they are EU members or aspiring to become.
Namely, all the governments of these countries are addressing the modernization of the vehicle fleet, aiming to support the replacement of vehicles with internal combustion engines with environmentally friendly ones, significantly reducing harmful gas emissions.
Slovenia:
In Slovenia, the practice of state subsidies for the purchase of electric vehicles will continue this year. Different conditions will apply for legal entities and individuals. Legal entities will be eligible for subsidies only for new vehicles, while individuals can apply for both new and used electric vehicles. The maximum cost for vehicles that legal entities can purchase with subsidies is 65,000 euros. For individuals, the subsidy amount (with a maximum of 6,500 euros) depends on the vehicle's value. Subsidies for electric bicycles are also announced for the first time, and a tax for electric vehicle owners is set to be introduced on June 1st this year.
Croatia:
Croatia introduced state incentives for the purchase of eco-friendly vehicles in 2014. However, the subsidy was unexpectedly omitted in 2023, with the explanation from the relevant "Environmental Protection and Energy Efficiency Fund" that new regulations were being developed. Now, media and the Croatian Automobile and Motorcycle Association unofficially claim that the fund is expected to soon announce a "Public Call" for subsidies, with the amount reaching a maximum of 40% of the vehicle's value depending on the type. In 2022, the incentive was approximately 10,000 euros for electric and 5,000 euros for plug-in hybrids. Interestingly, many public services in Croatia fund the purchase of exclusively electric vehicles. For example, the Croatian Post has about 470 electric vehicles and is developing its own charging network, saving around 240,000 euros in fuel costs alone last year.
Montenegro:
In Montenegro, in addition to stimulating the purchase of eco vehicles for individuals and legal entities (5,000 euros for electric, 2,500 euros for hybrid), the purchase of eco-friendly vehicles for the public sector is also incentivized, recently introduced at 7,500 euros for electric and 4,000 euros for hybrid vehicles. The public call was announced on December 8, 2023, and is still ongoing.
Bosnia and Herzegovina:
In Bosnia and Herzegovina, 1,000,000 KM (500,000 for legal entities and 500,000 for individuals) was approved for the purchase of eco-friendly vehicles last year. Subsidies for electric vehicles were 10,000 KM, plug-in hybrids 7,000 KM, and hybrids 5,000 KM. The continuation of this practice is expected in the current year.
North Macedonia:
In North Macedonia, subsidies for the purchase of eco-friendly vehicles started in 2017, reaching 5,000 euros for electric vehicles in the following years. However, there was no budget for subsidies last year. Whether there will be subsidies this year remains to be seen. According to available information from Macedonian media, which cite "well-informed sources," subsidies are expected for both electric and hybrid vehicles, as well as vouchers for installing CNG or methane devices.
Albania:
Albania has not provided direct subsidies for the purchase of eco-friendly vehicles so far. However, the import of electric vehicles is exempt from customs duties, VAT (17%), there are no toll charges, and there are tax benefits, free parking, etc. The country, hoping for increased tourism revenue, encourages the installation of electric chargers in cities and along major roads and the electrification of public transport. As an interesting note, the United Kingdom will donate 15 electric vehicles (and 22 minibusses) worth 1.5 million pounds to Albania as a sign of gratitude for the Albanian government agreeing to take over 200 prisoners of Albanian nationality serving sentences in British prisons.
Photo: Image by senivpetr on Freepik
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