Strasbourg, 05/07/2005 (Agence Europe) - On Tuesday in Strasbourg, Laszlo Kovacs, Commissioner taxation and customs union, presented journalists with the draft directive on private car taxation. He indicated that this legislative proposal had two objectives, “preventing double taxation and promoting environmental sustainability”. It includes the restructuring of private care taxation systems in Member States into a uniform Community system. This proposal does not intend to introduce new taxes or harmonise rates. The draft directive requires adoption by unanimity in Member States at the Council. The European Parliament provides a consultative opinion. Kovacs is convinced that most Member States will support his initiative, the question is “whether this will be unanimous or not”. On the other hand, support from MEPs has been obtained by “100%”, he said.
The Commission's proposal concerning taxes for private cars contains three elements: 1) the abolition of registration tax over a transitional period of “five to ten years”. Laszlo Kovacs assured that the tax receipts of Member States will not be affected because phasing out of the tax should be accompanied by a parallel increase in annual road tax; 2) the introduction of a system aimed at eliminating “double taxation”. Member States will reimburse part of the registration tax on any private car which is then exported or transferred with a view to its permanent use in another Member State. A similar system of reimbursement is suggested for annual road tax; 3) the introduction in the tax base of a sustainability factor based on CO2 emissions. Laszlo Kovacs pointed out that, “by 2008”, the element linked to CO2 emissions should generate 25% of the total receipts from registration and road tax each year and “at lest 50% by 2010”.
Laszlo Kovacs explained he had received “hundreds of letters from citizens of various Member States” urging him to take action on this dossier. He recalled “public consultation” when “90%” of respondents as well as the automobile manufacturers demonstrated their support in favour of an initiative at European level.