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Greece To Appear Before European Court Of Justice Over Car Tax

by Ulrika Lomas, Tax-News.com, Brussels

18 September 2002

Greece is to appear before the European Court of Justice over its refusal to grant temporary residents and expatriate workers a car tax break allowed by all other EU member states, it emerged this week.

Under current European laws, EU citizens can use their cars in other member countries for up to six months in the year before they are obliged to pay local automobile taxes. However, in Greece temporary residents are targeted on arrival for high car registration and other taxes.

Speaking to the RTE Interactive News service on Monday, a spokesperson for the European Commission revealed that this represents a contravention of EU law, and reported that the heavy taxes imposed by the Greek authorities often 'result in heavy and disproportionate fines, regular seizures, confiscations and auction sales of vehicles, prosecution for smuggling and severe penalties'.

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