WRITTEN QUESTION P-3479/00

by Ari Vatanen (PPE-DE) to the Commission

(31 October 2000)

Subject: Current system for car taxation and its inconsistency with the internal market and free trade

The Commission is urged to consider the correction of distortions in car taxation as a matter of urgency. In several Member States, the tax system treats car imports unfairly, especially when the importer is a private citizen. The taxes levied on imported cars are frequently not based on the real value of the car, particularly if the car is a used car. The excessively high taxes act as a barrier to intra-EU trade and prevent the establishment of competitive markets in the European Union. Article 25 of the Treaty establishing the European Community forbids custom duties on imports and exports between Member States as well as charges having equivalent effect.

What does the Commission intend to do in order to correct the distortions caused by arbitrary car import rules in the Member States? What will the Commission do to establish transparent rules on car imports which comply with Community law?

When will European consumers be able to enjoy the benefits of a genuine internal market when buying a car?

Answer given by Mr Bolkestein on behalf of the Commission

(8 December 2000)

On the subject of the calculation of the taxable value of cars, the Commission has already initiated infringement proceedings against various Member States for their failure to comply in full with the Court of Justice ruling requiring tax to be levied on the real value of the vehicle. There are also infringement proceedings in progress in relation to tax exemptions for the temporary use of a vehicle in a Member State other than that in which it has been registered and to exemptions relating to the transfer of vehicles on changing residence between Member States (Council Directive 83/182/EEC of 28 March 1983 on tax exemptions within the Community for certain means of transport temporarily imported into one Member State from another(1) and Council Directive 83/183/EEC of 28 March 1983 on tax exemptions applicable to permanent imports from a Member State of the personal property of individuals(2)). If the Member States concerned fail to comply with what it recommends in its reasoned opinions, the Commission can refer the case to the Court of Justice under Articles 226 (ex Article 169) et seq. of the EC Treaty.

As regards Article 25 of the EC Treaty and the prohibition of customs duties and charges having equivalent effect, the Commission would inform the Honourable Member that the basis of its action on tax matters is the ban on discrimination contained in Article 90 (ex Article 95) of the EC Treaty, not Article 25 (ex Article 12).

In addition to its action on monitoring compliance with Community law, the Commission submitted a proposal to the Council in February 1998 on amending Directives 83/182/EEC and 83/183/EEC to adapt them to internal market requirements. The Council has not yet adopted that proposal. Lastly, the Commission is currently preparing an overall communication on vehicle taxation.

The Commission believes that its action will significantly improve the situation of the European citizen in this area.

(1) OJ L 105, 23.4.1983.

(2) OJ L 105, 23.4.1983.