Brussels, 22/06/2006 (Agence Europe) - On Wednesday 21 June, the economic and monetary affairs committee adopted the report by Karin Riis-Jorgensen (ALDE, Denmark) on the draft directive on taxation of private motor cars (see EUROPE 8984 and 8973). This supports the general approach of the legislative proposal phasing out registration tax on private cars over a period of ten years. There would be an accompanying increase in annual road fund tax whose tax base would contain an environmental element linked to carbon dioxide (CO2) emissions. The vote in plenary session will be held in July.
MEPs propose that environmental factors are given greater importance by linking the level of taxation and the energy efficiency of the vehicle and polluting emissions other than CO2. The base and level of taxation of private cars vary widely from one Member State to another from zero to 180% of the price before tax of the vehicle. In 1999, registration tax varied in absolute terms between €15,659 in Denmark and €267 in Italy.