How vehicle taxes can accelerate electric car sales

Current systems of car taxation have driven a transport system dominated by privately owned, large engined cars contributing to pollution, climate change, congestion and lost urban space. T&E analysis, supported by Commission’s own modelling, shows that all new cars have to be zero emission – largely electric – from early 2030s to be in line with the Paris climate goals, and their numbers, as well as kilometres driven, have to reduce to cut energy demand and make cities clean and liveable. To respond to these challenges a wholesale reform of vehicle taxation systems is urgently needed.

T&E's position paper (available in English, French, Italian and Spanish) outlines the options for reform. Also, this report provides an overview of different CO2-based vehicle tax systems across EU member states which were in force by mid-2018.