Portuguese budget promises greener car taxation

Draft 2008 budget foresees bigger environmental component in tax base, fiscal push away from diesel vehicles

Portugal's 2008 budget will further green national vehicle taxation, according to government plans published last Friday.

The proportion of a vehicle purchase tax that is calculated on the basis of carbon dioxide emissions will rise from 30 to 60 per cent from January (EED 19/02/07). And a combination of purchase tax relief amounting to €64m and a rise of €23m in emission-based circulation taxes will prompt a shift from diesel to petrol and hybrid cars, the government says.

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