Fleet News

EC to investigate registration tax

CAR registration taxes have come under renewed attack from the European Commission, which believes they should be reduced or scrapped in order to improve the movement of cars within the European Union.

The EC claims registration taxes are an obstacle to consumers purchasing cars in other countries in its latest strategy document. It recommends they should be phased out over a transitional period of five to 10 years and replaced by higher annual road and fuel taxes.

Ministers also want to put greater emphasis on environmental objectives by relating taxes to carbon dioxide emissions - currently the UK is the only country to do this.

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