EU ponders ‘polluter pays’ car tax proposals

MOTORISTS could be paying car tax linked to the amount of CO2 emissions from their vehicles within a few years under proposals being considered by the EU.

The European Commission has signalled it wants to reform car taxation systems in Europe in a move that could result in a 20% reduction in car prices through such measures as the abolition of Vehicle Registration Tax (VRT) in Ireland.

Driver organisations and consumer groups have welcomed proposals that would see the gradual phasing out of vehicle registration taxes, as well as the introduction of a refund scheme for cars moved between countries.