#tax

Now that the Spark hatchback has shuffled off this mortal coil, the Trax serves as Chevy’s lowest-priced vehicle. For 2024, the bowtie brand is giving it an overhaul by binning its awkward appearance and overhauling the drivetrain. Will better looks and lower price but less power and half the driven wheels prove a winning formula?

With a 25-percent import tariff looming like a hanging blade over U.S.-built vehicles in the Chinese market, Tesla has managed to side-step another sales-sinking levy: the country’s purchase tax.

At 10 percent, the purchase tax applies to most vehicle sales in that market, though the state exempts various domestic “new energy” (electric) vehicles from the added cost. As of Friday, Tesla vehicles, despite being manufactured in California, will join the ranks of these privileged automobiles. However, buyers hoping to realize the full benefit of the tax cut are out of luck.

Europe, the continent where tech-savvy bad guys in action movies come from, finds itself in a rapid and transformational shift. As European lawmakers and city governments turn their back on diesel, so too are automakers and customers.

Compared to past years, the take rate for diesel automobiles now resembles the trajectory of American-market passenger cars. Last month, the continent posted the worst sales showing for diesel vehicles this century. In what DPRK News Service calls “Belgian’s colonies,” the take rate for diesel — which once surpassed 55 percent — is accelerating its descent to zero.

It seems you can tax the evil away.

After hitting it big with the Fab Four, George Harrison wrote the scathing song Taxman in protest of the British government’s “Super Tax” on high-income earners. At the time, the boys faced a 95 percent tax on their earnings (“There’s one for you, nineteen for me”), and Harrison reportedly did everything he could to offshore his wealth.

Britain’s dismal weather wasn’t the only reason rock musicians fled the country during this period.

In beautiful British Columbia, a mountain- and wine-filled area north of Seattle, the provincial government’s recent budget has some auto dealers steaming mad and worried their customers will hit the road in search of deal. The province’s New Democratic Party government, elected last year, plans to levy a 25 percent tax on the purchase of very high-end vehicles, with lesser models facing a 20-percent markup. However, many dealers wonder where the law of diminishing returns comes into play.

California is exploring the possibility of a voluntary Vehicle Miles Traveled (VMT) Tax to help make up for the shortfall in highway funding that is derived from the increase in vehicle fuel efficiency.

One thousand, nine hundred, and fifty two dollars.

That is how much the average Georgian is supposed to pay in tax, title, and registration fees every year according to Bankrate.com.

When I read that factoid, my eyebrows almost flew off my head. The amount had no cents, and the statement made no sense because I happen to be the guy who collects the taxes from my customers and sends them to the state. Only a $28,000+ car purchase every single year would make this possible, and Georgia is a notoriously poor state. Out of a population of nearly 10 million, our state registered fewer than 300,000 new vehicle sales in 2012.

I quickly concluded that Bankrate.com had done little homework except to launched a PR campaign, under the guise of a study, that was heavy on the numbers and light on the facts.

I also decided to read through the list since 49 other states were also given their daily dose of tax calculations. Immediately, I saw enough red flags to warrant a bit more detail.

As part of a new free trade agreement due to be signed with the European Union, Canada will remove its 6.1 percent tariff on imported vehicles from the European Union, while the EU will remove its 10 percent duties on autos and and its 4.5 percent duty on parts.

A scheme to tax cars based on their C02 output could have the unintended consequence of causing UK motorists to scrap tens of thousands of perfectly good cars in the UK, solely because their annual tax rates, based on C02 consumption, have become too expensive for many motorists.

“Hybrid and electric cars are sparing the environment. Critics say they’re hurting the roads,” writes Bloomberg. “The popularity of these fuel-efficient vehicles is being blamed for a drop in gasoline taxes that pay for local highway and bridge maintenance, with three states enacting rules to make up the losses with added fees on the cars and at least five others weighing similar legislation.”

Every so often, the same tired rumor will pop up again, like a particularly resilient pimple that habitually reappears in the same conspicuous spot. Thanks to the incessant hunger for clicks among auto websites, these rumors refuse to die, no matter how asinine they are. How many times have you seen a “BREAKING” or “EXCLUSIVE” story on the next Toyota Supra or some absurd BS fabrication regarding a diesel Mazda MX-5?

Despite Victor Muller’s assurances that he is innocent, that he has not been accused of any crime, and that Sweden’s Economic Crime Authority most likely only wants to invite him for a friendly chat, Sweden’s Göteborgs-Posten thinks it knows who is the target of the investigation: Victor Muller, and Saab’s board. In the end, Victor Muller was alone on board. Says the paper:

Former Saab Chairman Victor Muller “will be called in to answer questions related to a Swedish inquiry into alleged tax offenses at the bankrupt carmaker,” Sweden’s Economic Crime Authority told Reuters.

Muller and lawyer Geers in court – Both are suspects of tax evasion

As suspected, the Swedish Saab scandal over avoided taxes grows wider. Yesterday, it reached the failed takeover artist Victor Muller. “Muller prime suspect in Saab tangle,” headlines Swedens Svenska Dagbladet, The paper obtained court documents that say Muller is wanted for questioning.

During better times:Kristina Geers and Victor Muller

Key members of the board of bankrupt carmaker Saab were arrested yesterday on suspicions of tax evasion. Former Saab General Counsel Kristina Geers, former CFO Karl-Gustav Lindstrom, and former CEO Jan Åke Jonsson spent the night in jail. After a serious grilling, the three were released today. At the same time, the offices of Spyker in Zeewolde, Netherlands, were searched by police at the request of Swedish authorities, Z24.NL reports.

Japan’s minivehicles or “kei” cars could lose their (next to their cuteness) biggest attraction: The tax benefit. The Japanese government is thinking about charging the same tax for regular cars and mini vehicles alike, The Nikkei [sub] writes.