Car taxation levels in Europe should be based on factors such as CO2 emissions that help deliver common EU policy objectives rather than on technology-specific criteria, for example engine size, says the European Commission.
The recommendation was made on Friday in a policy paper aiming to harmonise car taxation across the EU. The commission explains that the multitude of criteria and thresholds on which taxation is based on means manufacturers have to adapt their cars to different national rules, leading to a “technical fragmentation” of the EU market.
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