RELATIONSHIP BETWEEN ROAD TAX RATE REDUCTION DEPENDING ON VEHICLE AGE AND EMISSION PARAMETERS OF TAXED VEHICLE CATEGORIES IN THE CZECH REPUBLIC

Due to the processing of unique data concerning the vehicle fleet of the Czech Republic and the national emission inventory, this paper examines the relevance of the benefits available for newer vehicles by means of the Czech road tax against the principle of internalization of road transport externalities. A serious finding is that the highest tax benefits are available for vehicles that generate the largest amount of CO2 and NOX emissions. The findings should serve as a support for the adjustment of road tax reductions in the Czech Republic. Based on the similarities between the Czech and Slovak fleets and relevant legislation, the preferential treatment of taxation of newer vehicles applied in Slovakia can be assessed through a similar method. On a general level, the examination proved that the input data are suitable for the application of a fiscal instrument that accounts for emissions in road transport.