Fuel exenses for a private car raise 60.000 króna a year

Monday, 30 November 2009 05:30

Higher taxes on fuel which has been planned to set on this new years means that the expenses of running a private car will cost the family 60 thousand króna more than a year ago.

If looking at income taxes will each family need to earn 100 thousand króna wages more to be able to continue to use the car as they are used to, which many can not change.

Increased taxes on cars and fuel which will if nothing changes start this new years is of various types. The vehicle fees are to be raised by 10%, fuel and oil fees 5% and carbon tax will be close to three króna.

Value added taxes in the following step will be raised up to 25% and with this added up will each liter of fuel raise by 8 króna which will raise the expenses of each car owners to all up to 18 thousand a year, of the opinion of the Union of Icelandic car owners.

In total are the affect of higher fuel prices, in the opinion of FIB, that all of the comparing measures in the index numbers will raise which again raises loans and increases the inflation. This will happen at the same time as the contributions for road constructions are cut back but the fuel and vehicle fees have usually paid the transportation projects.