Tag: car tax

EU members must give up their sovereignty on taxation issues if they are serious about cutting greenhouse gases from cars, says the European Automobile Manufacturers Association (ACEA). A Commission proposal to harmonise tax rates on diesel, due 13 March, is also set to test EU countries' resolve.

The Commission plans to scrap car registration charges in favour of a harmonised EU road tax scheme that would take account of vehicles' CO2 emissions. If adopted, the proposal could make cleaner cars more attractive to consumers.

The car industry might be unable to live up to its voluntary commitments to reduce CO2 emissions from cars by 2010. Failure could lead to the EU taking legislative measures.

This year's report on the effectiveness of the EU's strategy to reduce CO2 emissions from passenger cars shows that the car industry will have to undertake more efforts if it wants to achieve its commitments. If carmakers fail to reduce emissions on a voluntary basis, the Commission is prepared to take legislative action, it says.