CO2 taxation

CO2 taxation is now well established across the European Union. Most EU member states currently apply some form of CO2 tax to the registration and/or ownership of passenger cars.

This document provides an overview of CO2-based motor vehicle taxes in the European Union.

The 20 EU countries that levy passenger car taxes partially or totally based on the cars’ CO2 emissions and/or fuel consumption are: Austria, Belgium, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Spain, Sweden and the United Kingdom.

The European automobile industry welcomes this trend towards CO2-related car taxation. However, it regrets the lack of uniformity in the implementation of these taxes. European auto makers therefore support taxation for passenger cars that is:

  • exclusively based on CO2 emissions;
  • technologically neutral;
  • linear; and
  • budget neutral.

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