Brussels, 09/09/2002 (Agence Europe) - On Friday, the European Commission adopted a Communication on car taxation, presented by Commissioner Frits Bolkestein. As reported in Europe (6 September on p.8, 27 July on p.8 and 25 July on p.10), it is proposing to phase out registration tax as levied in ten Member States and introduce a reimbursement system for the tax between different Member States. In order to ensure budget neutrality, registration tax revenue might be transferred to the annual car tax. The Communication suggested that car tax take greater account of the CO2 emissions of the vehicle in question, as is already the case in some Member States.
The Commission is not planning to harmonise how much car tax is actually paid, explained a Commission representative on Monday, but to facilitate the free circulation of individuals and ensure, for example, that a Danish citizen can move to Greece without having to pay registration tax again. As part of Commissioner Mario Monti's proposals to open up the car dealership business, bringing tax systems closer together should help open up the European car market. The Commission may decide to put forward draft legislation, depending on the outcome of the consultation process connected with the Communication.