Tax hike in view for German gas guzzlers

Environment minister Jürgen Trittin has praised a decision by Germany's 16 state governments to increase the vehicle tax on sport-utility vehicles by re-classifying them as normal cars instead of lorries. Mr Trittin said that it was incomprehensible that such fuel inefficient vehicles should enjoy a tax break. Following state approval of the measure, the federal finance and transport ministries are expected to amend Germany's vehicle tax law accordingly. State governments estimate that the change will net them an extra €40m annually in tax revenue. See press release.

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