Photo by dave_7 / flickr.com

The scrap-for-new scheme to boost car sales with an incentive payment of around 2000 euros is already functioning in several European states. In Poland the scheme is under discussion with varied opinions as to its effectiveness.

The government is considering the introduction of an incentive payment in return for scrapping an old, over ten years old car, and purchasing a new vehicle whose CO2 emission would not exceed 155 g/km. The premium would not burden the budget since the money would come from the new eco tax. The incentive, though a modest one, could improve the situation of the Polish car market convincing people to buy new cars in return for scrapping their old vehicles. The initial suggestion is 1000 euro for every old car scrapped in order to buy a new car.

Since Poland's EU entry the car market saw an influx of over 4,5 million old cars. It is probable that the scrap for new scheme could induce Poles to buy new cars and help rid Polish roads of the old cars.

Click on the audio icon to listen to the report by Agnieszka Bielawska.