European Commission Aims to Abolish Car Taxes

The European Commission wants to abolish motor vehicle taxes as well as the registration taxes for passenger vehicles in the European Union. The taxation should be linked more strongly to the use of the car and the output of carbon dioxide.

According to the proposal, somebody who parks their car outside their house the whole year, will not have to pay any tax, explains a European Commission spokesperson. The tax revenue deficit can be compensated for by the introduction of a road toll or higher petrol duty.

The Commission continues to pursue two goals: On the one hand it wants to diminish barriers to trade; on the other hand it is keen to fulfil the ecological requirements of the Kyoto agreement.