CO2 Taxation

CO2-based taxation of passenger cars is now well established across the European Union.

This comprehensive document provides an overview of CO2-based motor vehicle taxes in the 28 member states of the European Union.

Today, 22 EU member states levy passenger car taxes partially or totally based on CO2 emissions and/or fuel consumption. The 6 countries that do not apply CO2-based taxation are: Bulgaria, Estonia, Hungary, Lithuania, Poland and Slovakia.

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.

More from this section