Public Consultation on Proposals for Passenger Car Taxation

Publication date: 02 August 2004

The European Commission has launched an online consultation for views from the public and business on reforming EU passenger car taxation systems so as to remove tax obstacles which distort the functioning of the Internal Market. The consultation, which runs until 10 September 2004, is based on a questionnaire which seeks information on the tax problems encountered when passenger cars are moved from one Member State to another and views on four possible options for resolving those problems:
• do nothing
• retain existing taxation systems but introduce a system of refund of registration tax
• phase out registration tax gradually and introduce a new tax structure linked to CO2 emissions or
• reduce registration tax to a level that does not exceed 10% of the pre-tax price of the car

The motor industry and consumer associations which have already been consulted for views support the third option. Their reactions are described in the more descriptive document – the "Extended Impact Assessment" - associated with the questionnaire.

car_taxation_impact.pdf (265 KB)

Background:
The consultation follows the Commission's Communication on passenger car taxation of September 2002 in which the Commission recommended in particular the gradual phasing out of registration taxes and the introduction of a new tax structure linked to CO2 emissions. The opinions expressed during the present public consultation will be taken into account in a proposal on this subject that the Commission is due to present at the end of this year.