Europe wants to regulate road tax based on emissions

The taxes paid in each of the 27 country members of the European Union differ considerably from one country to another. We're speaking not only about the purchase tax (usually Sales Tax, or Value Added Tax, and sometimes Immatriculation) but also the road tax, which drivers have to pay annually in order to be able to get around in their vehicles.

For the regular Sales Tax, the Ecofin (the council of European Finances Ministers) is deciding this week how the tax system should be changed so as there are no significant differences among the 27 members.

Back in 2005, the European Council decided to change a road tax scheme so it considers vehicle emissions (the UK, for instance, does this already). The debate now is open: some countries prefer the EU not to impose a transnational tax system based on emissions. Others, such as Portugal, are asking for a flexible scheme which would force members to base the road tax on emissions, but leaving it up to each country to decide how exactly to define the percentages, categories and exemptions.

[Source: Europa Press via Econoticias]