T&E Position Paper on the Proposal for a Council Directive on Passenger Car Related Taxes

Summary of T&E’s position

1. T&E strongly opposes the proposed abolition of the registration tax;
2. T&E supports the introduction of a harmonised refund system to avoid double taxation;
3. T&E favours restructuring BOTH registration and circulation taxes on the basis of CO2 emissions, but only if the restructuring is done in a way that it indeed reduces emissions;
4. T&E urge the Council to widen the scope of CO2 based taxation as to include taxes on company cars and vans (light duty vehicles, category N1);
5. T&E favours a deeper and faster change: by 31 December 2008 75% of tax revenue from registration, circulation and company car taxes and taxes on vans should be based on CO2;
6. Finally, T&E is in favour of aligning CO2 taxation with CO2 labelling of passenger cars (and vans obviously), so that there is a perfect and transparent interplay of information and incentives towards consumers.