CO2-based taxation of passenger cars is now well established across the European Union.
This comprehensive document provides an overview of CO2-based motor vehicle taxes in the 27 member states of the European Union plus the United Kingdom.
Today, 24 EU countries levy car taxes partially or totally based on the CO2 emissions and/or fuel consumption of a vehicle. The three countries that do not apply CO2-based taxation are Estonia, Lithuania and Poland.
The European automobile industry welcomes this trend towards CO2-related car taxation. However, it regrets the lack of uniformity in the implementation of these taxes. European auto makers therefore support taxation for passenger cars that is:
- exclusively based on CO2 emissions;
- technologically neutral;
- linear; and
- budget neutral.