There are various taxes in the Republic of Croatia concerning taxation on buying new or used vehicles. The most important ones are VAT and PPMV (Special tax on motor vehicles). Besides them, it is important to mention tax on road vehicles, import tax, approval, tire and tin fee and property change tax. Most of countries of the European Union share similar types of taxation on purchasing motor vehicles. The ones they have in common are VAT and special tax on motor vehicles. Special tax on motor vehicles is the tax people pay when buying a vehicle. The amount they have to pay includes the value component as well as the ecological one. The price of the vehicle affects the value component while emissions of exhaust gases (CO2) form the ecological part of the final price. Increasing trend of special tax on motor vehicles is noticable due to global and EU politics because they tend to reduce the environmental pollution. Although special tax on motor vehicles increases year after year, that has not affected their sales. On the contrary, sales are also tending to grow. That can be related with the growth of the Croatian economy and the increase of purchasing power of its residents. That can be concluded after studying the data which shows growing GDP rates through the years, reduction of unemployment, growth of tourism and a fall in interest rates related to non-purpose loans.