Euro Parliament supports move to CO2-based annual car tax
Tue 09 May 2006
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The European Parliament has supported the European Commission's proposals to scrap national passenger car registration taxes throughout the EU and replace them with a single European levy based on exhaust emissions.
MEPs have backed the target and timetable for the directive, as well as voting for taxes to be based not only on CO2 emissions but also on fuel consumption and emissions of air pollutants like fine particulates and NOx.
Car registration - or purchase - taxes currently vary widely across the EU. The Commission says that this distorts the internal market, encourages tax avoidance and is complex to administer.
The Commission therefore proposed the directive to phase out registration taxes over ten years and replace them with annual road taxes linked to car carbon dioxide emissions.
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