Fleet News

Europe to copy UK's emissions-based company car tax system?

THE UK's new emissions-based Vehicle Excise Duty system and company car tax regime could form the blueprint for future pan-European motoring taxation. A bulletin from the European Commission says its work will take account of new parameters relating to the EC's environmental objectives.

The commission is particularly interested in 'the objective of differentiating the financial burden associated with the purchase or ownership of a car as a function of its carbon dioxide emissions'. The UK has already taken huge steps to introduce 'green' influences to car taxation, with the introduction of the carbon dioxide-based VED system and the start of the CO2-based company car tax next April.

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