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Bolkestein Announces EU Car Tax Plans

by Ulrika Lomas, Tax-News.com, Brussels

30 August 2002

EC Internal Market Commissioner, Frits Bolkestein plans to introduce new legislation designed to bring the taxation of automobiles across the European Union into greater alignment, whilst also working towards reducing CO2 emissions, according to an FT Deutschland report this week.

The German business daily quoted Mr Bolkestein as observing that: 'Registration fees as well as the very different automobile systems lead to difficulties which hinder the internal market,' and revealed that the European Commission has plans to release a communication on the issue which will form the basis for new legislation within the next two weeks.

According to the FT Deutschland report, Mr Bolkestein wants to make the level of car tax payable in the EU dependent on CO2 emissions, in order to bridge the gap between the EU's commitments under the Kyoto Protocol (average emissions down to 120 grams per kilometre by 2010), and the agreement reached with the automobile industry (140 grams per kilometre by 2008/09).

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