Germany and Portugal plan introduction of carbon-based car taxes by 2008
Tue 20 February 2007
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Germany and Portugal have separately announced plans to change their systems of car taxation to link the level of taxes with emissions of carbon dioxide and other air pollutants from vehicles. The Portugese plans are set to come into force in July 2007 while those in Germany could be approved by the German Parliament by the end of the year and be enforced in 2008.
According to a report in ENDS, Germany's Transport Minister Wolfgang Tiefensee said: "Those who drive stink-bombs will have to pay more. But those who drive vehicles with low emissions will pay less". According to the proposals, the German tax system for vehicles will be revised to reflect releases of CO2, carbon monoxide and fine particles instead of, as now, engine size.
The Transport Minister says that the changes will be "revenue neutral" for Germany’s 16 states, which gain the proceeds from vehicle taxation.
Though Germany currently hold the EU Presidency and the European Commission has recently issued a proposal to restructure vehicle taxation across Europe German officials told ENDS that the Government had "no plans to continue to debate" the European Commission's proposal. (See also earlier story: European Commission publishes proposals for limiting car emissions - 7 February)
Meanwhile, the Portuguese Government has approved a new car taxation regime that will see duty charged on road vehicles according to environmental impact from July 2007. The plans include the introduction of a one-off purchase tax and an annual road tax which will be partially weighted according to engine size and CO2 emissions (the weighting for emissions will rise over time). The plans still require both Parliamentary and Presidential approval to enter into force.
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