Green car tax plans falter

Wed, 14 Nov 2007



The proposal for a European Union ruling on how much cars are taxed based on the level at which they pollute has faltered under questioning from ministers. The move, suggested by the European Commission, is aiming to cut out registration tax and create a new system based on car pollutant level.

One EU diplomat reportedly commented: "It's not going very far, very fast. A colleague said ministers were discussing the same issue in 1991. There was a broad exchange of views but ministers are not in a position to establish a clear political position on this subject."

Unfortunately, the new vehicle measure is unlikely to gain Europe-wide acceptance, despite its intention to cur back on European carbon emissions. The Deputy Finance Minister of Germany, Thomas Mirow, reportedly commented: "There are many states which are fundamentally of the view that the vehicle tax is not something which should be dealt with on EU level, but rather in a national framework."

Recent research shows that UK motorists can cut the cost of runnning a car in a number of ways, including shopping around for car finance and buying a smaller car with a greener engine .
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