Motor Vehicle Taxation in the Slovak Republic and its Impacts in the Context of Fiscal Decentralization

The article deals with the motor vehicle tax in relation with fiscal decentralization, particularly from 2005 with competence delegated to the self-governing regions in the area of motor vehicle tax. The result of this provision in the field of fiscal decentralization is increasing of differences in the motor vehicle tax burden in self-governing regions of Slovakia. The paper is the result of solving a series of impact studies solved by the authors in this field. Gradually over time from the transfer of competences in setting tax rates on motor vehicles to self-governing regions and usage of the incomes of this tax can realistically assess the development and impact of this element of fiscal decentralization in the Slovak Republic as well as propose a solution of resulting situation. The aim of the paper is to identify the motor vehicle tax rates and tax income changes in the period of 2005 to 2013 as the result of fiscal decentralization and tax competence of self-governing regions in the Slovak Republic. The main goal of the paper is to propose the new unified tax rates with higher tax reduction for environmentally friendly vehicles for all self-governing regions in the Slovak Republic.