| Author (Corporate) | European Commission: Press and Communication Service |
|---|---|
| Series Title | Press Release |
| Series Details | IP/02/1274 (9.9.02) |
| Publication Date | 09/09/2002 |
| Content Type | News |
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The European Commission published a Communication on 6 September 2002 which presents a comprehensive strategy on the taxation of passenger cars in the European Union. In the Communication the Commission analyses current passenger car taxation systems and explores ways of improving their co-ordination so as to remove the present considerable tax obstacles and distortions to free movement of passenger cars within the Internal Market. Registration taxes are identified as the biggest problem and therefore the Commission recommends their gradual reduction and even abolition, to be replaced by annual road taxes and fuel taxes (so that the tax burden would remain the same but related to the use of a car rather than its acquisition). The Commission also recommends a certain degree of approximation of annual road taxes to prevent car market fragmentation. Second, the Commission examines ways of restructuring existing vehicle taxes so as to put more emphasis on environmental objectives in line with Community policy and the Kyoto Protocol. In particular, it recommends that the taxation of new passenger cars be more directly related to their CO2 emissions. The Commission urges Member States to take these recommendations into account when evaluating and revising their national vehicle taxation systems. Moreover, the Commission may present proposals for Community legislation on the basis of these principles and in the light of the results of consultations with interested parties based on this strategy Communication. |
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| Source Link | http://europa.eu/rapid/pressReleasesAction.do?reference=IP/02/1274&format=HTML&rapid=0&language=EN&guiLanguage=en |
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| Subject Categories | Business and Industry, Taxation |
| Countries / Regions | Europe |
