The seller ofthe vehicle is to contribute with a discount which amounts to the same as the government subsidy. Through the price signal of the new car registration tax scheme, linked with the emission output of a car, the Latvian Government aimed to motivate end-users to buy environment-friendly cars and to make car manufacturers penetrate the market with more efficient vehicles. Thus, since 2009, when the new scheme has practically been brought to force, the average CO2 emissions of new cars decreased by 3.2% in 2013 (147.1 g/km) and by 4.5% in 2014 (140.4 g/km).