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Monday, February 18, 2008

Commission Votes for Green Vehicle Tax

Commission Votes for Green Vehicle Tax


The European Commission wants to scrap varying national vehicle and road taxes in EU member states in favour of a standard taxation system centred on CO2 emissions.

And MEPs agree pollution should be the yardstick rather than national registration taxes.
A report to be voted on in Strasbourg warns against taking tax policy out of national hands but says different vehicle tax systems are a consumer burden - particularly for motorists wanting to register their vehicles elsewhere in the EU when moving around Europe for work.
Conservative MEPs are refusing to back the new plan if a system based on CO2 emissions forces vintage and veteran cars and trucks off the road. But hundreds of other MEPs want to see a "green"-based car tax system applied across the 25 EU countries.
The MEPs' vote has no legal force the scheme could only become law if approved unanimously by EU governments, and there is currently no majority amongst member states for the plan.
A British government spokeswoman explained: "As drafted by the Commission the tax plan would not involve any changes in the UK system. However, there would be a problem over agreeing any form of standardised taxation policy in the EU on principle, and the Commission knows this is a red line issue for the UK."
But Liberal Democrat MEP Sharon Bowles said European Parliament support was a welcome move towards such a system:
"The European Parliament is right to back a change in car taxes to influence the cars we buy. This is about using taxes in a new way to change behaviour, not to raise money for EU member states."
She added: "Green taxes have worked in the Nordic countries, and they should be a model for the rest of Europe."

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