Fleet News

Proposals for flat-rate road taxes are blocked by EU

The European Union Council of Ministers has blocked European Commission proposals that flat-rate road taxes be scrapped across Europe in favour of levies varied according to vehicle CO2 emissions.

While ministers agreed this week on the need for “fiscal measures in passenger car taxation for the purpose of discouraging environmentally damaging behaviour”, they did not agree an EU directive was necessary to order this in all 27 EU countries.

As a result, the current Portuguese presidency of the EU is to consult with the EC on whether the proposed law should be watered down or abandoned.

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