What is Gas Guzzler Tax (GGT)?
National Government charges some mandatory payment from a person or a company on some specific assets. Like on every other object, there is a tax specifically on vehicle as well. All the motor vehicles must give a standard mileage of fuel average, set by the government. If some does not fulfill the described criterion these are termed as gas-guzzling i.e. they use a huge amount of gas very quickly. So government imposes penalty on them referred to as gas guzzler tax(GGT).
What Causes Gas guzzling?
If we talk about the making of cars it is commonly thought that this is a built-in fault of a vehicle to use plenty of fuel. But in other cases some other reasons prevailed and a normal good fuel average giving vehicles become gas guzzling. The main reasons of them are might be:
- Built in fault: Most of the time there is improper engine efficiency that makes a car gas guzzling.
- Heavy loads: The heavier a vehicle is, the harder an engine has to work to get it moving.
- Poor air conditioning.
- Intense driving.
- Poorly inflated Tires.
Is Gas guzzler tax still imposed?
Since 1991, every other person purchasing a new car that does not fulfill the combined EPA fuel economy, rating less than 22.5 same tax to every new car consumer with that low fuel average. The tax is charged on fuel in-efficient automobiles that are from station wagons, vans to sport utility vehicles, depending on their fuel efficiency rating.
Which cars has the gas guzzler tax?
Generally, this is a common school of thoughts that a vehicle is gas guzzling due to some driver’s fault and this is true up to some extent as well. But we cannot ignore the technical problem in making that becomes the built-in deprivation for a car. If we talk about the models of the cars that have a GGT in 2023, based on interior passengers and cargo volumes, some of them are listed below:
- Two Seated Cars:
Chevrolet Corvette Z06
Porsche 911 GT3
- Mini Cars:
Aston Martin DB11 V12
Porsche 911 Turbo S Cabriolet
Mercedes-AMG SL63 4Matic
- Medium Sized Cars:
Cadillac CT5-V Black wing
BMW M5 Sedan
- Full sized Cars:
Maserati Quattro Porte Trofeo
Dodge Charger SRT Wide body
GGT on Imported Cars:
No matter how much you have paid on other type of taxes while importing a car if you wish to buy a gas guzzling car you have to pay GGT on it as well. Although this is built-in problem of the vehicle yet the buyer has to pay for he must be conscious before selecting the car. This tax is reported on the IRS Form 720.
GGT in Different Countries:
Usually, there is no tax if a car has the combined fuel economy of at least 22.5 mpg. If an automobile goes to a value of 21.5mpg, 20.5mpg, and 19.5mpg and so on, they have to pay the GGT accordingly. According to general economy ratio and some other consequences each country’s government has set the different range of tax price for a gas guzzling car. If we are interested to know them all this would be a total chaos so we can take a glance of some of the major countries’ GGT amount.
In United States:
The tax for a low fuel average car in US is not surprising as government, despite of considering it a built-in fault, charges it from the consumer or buyer.
The minimum amount of tax collected for a vehicle having combined fuel economy less than 22.5 is from 1000$ to 1700$ of a car giving 20.5mpg.
In Germany:
Like every other country Germany does impose the GGT on buyer for purchasing a car with gas guzzling property. The amount of money it charges is round about 0.67€. Despite of all, the individuals that are willing to buy such cars they do not bother paying this type of additional taxes.
HOW TO AVOID GGT?
This is an old wives tale that if someone is fond of a thing he will buy it at any cost. But some people are here that take every detail into count before buying anything. So if he does not want to give such extra taxes he should select with some other similar cars with good fuel efficiency.
