Brussels, 5 July 2005
Passenger car taxes: Commission proposes to improve functioning of the Internal Market and promote sustainability
The European Commission has presented a proposal for a Directive that would require Member States to re-structure their passenger car taxation systems. The proposal aims to improve the functioning of the Internal Market by removing existing tax obstacles to the transfer of passenger cars from one Member State to another. It would also promote sustainability by restructuring the tax base of both registration taxes and annual circulation taxes so as to include elements directly related to carbon dioxide emissions of passenger cars. The proposal aims only to establish an EU structure for passenger car taxes. It would not harmonise tax rates or oblige Member States to introduce new taxes.
“Following the extensive consultations that the Commission has conducted with stakeholders, we believe that there is strong support for the abolition of registration taxes which give rise to double taxation for European citizens and create fragmentation within the European car industry" said EU Taxation and Customs Commissioner László Kovács. "There is also considerable support for tax measures that would encourage consumers to select more environmentally friendly passenger cars".
The Commission's passenger car tax proposal contains three elements
For the proposal and background see:
See also MEMO/05/236