Car taxation
Encyclopedia
Car taxation is an instrument to influence the purchase decisions of consumers. Taxes can be differentiated to support the market introduction of fuel efficient and low carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...

(CO2) emitting cars.

European Union

The Commission has made a proposal for a Council Directive on passenger car taxation which is currently before the Council and Parliament.

The Commission encourages again Member States to adopt this proposal as soon as possible and to adapt their car taxation policies so as to promote the purchase of fuel efficient cars throughout the EU and help manufacturers respect the upcoming fuel efficiency framework, thus contributing their share to reducing the CO2 emissions of cars. Taxes differentiated over the whole range of cars on the market, so as to gradually induce a switch towards less emitting cars, would be an efficient way to reduce compliance costs for manufacturers.
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