WRITTEN QUESTION E-1286/01

by Theresa Villiers (PPE-DE) to the Commission

(3 May 2001)

Subject: Vehicle tax

In his speech Taxation and competition: the realisation of the internal market in Hoevelaken on 17 March 2000, Commissioner Bolkestein highlighted the issue of vehicle taxation, commenting:

Turning to the field of excises, you have, for example, the problem with registration taxes for cars. If you buy a new car here in the Netherlands, you will pay a registration tax. But then if you move to live and work in another Member State and apply for number plates, in 11 Member States you are going to be asked to pay another registration tax. And there is no system of refunds or relief!

Could the Commission state if it has any plans to harmonise registration tax or if it has any other plans to coordinate vehicle taxation?

Answer given by Mr Bolkestein on behalf of the Commission

(3 July 2001)

As the Honourable Member is certainly aware the Commission presented a Proposal for a Council Directive(1) in 1998, which has as an overall objective the bringing of the tax treatment of vehicles, which accompany private individuals moving from one Member State to another, more into line with the concept and principles of the Single Market. Situations like double payment of registration tax or payment of excessive amounts of vehicle taxes, which have been the subject of repeated complaints by citizens or of judgements by the Court of Justice, have also been addressed in this proposal. Member States discussed this proposal only once, in February 1999, and since then it has remained on the Council's table. The Parliament gave its favourable opinion on this proposal in June 1999.

The Commission intends to present a Communication on vehicle taxation before the end of this year or early in 2002, in order to launch a discussion with Member States, Community Institutions and other stakeholders on future options for action at Community and national levels. Issues such as double payment or non-refund of registration tax paid, in particular when private motor vehicles are moved permanently to another Member State, will, inter alia, be dealt with in this Communication.

The Commission will wait until the outcome of this discussion is known, before taking any initiative in this area.

In the meantime, the Commission has, in application of Article 1 of Council Directive 83/183/EEC(2), insisted on the distinction between consumption taxes on one hand and duties paid during registration and periodical taxes linked to use of the vehicle in the interior of a Member State on the other. The Commission is of the view that only periodical taxes linked to the use of a vehicle in the interior of a Member State and duties paid during the registration (registration fees), fall under Article 1 paragraph 2 of Council Directive 88/183/EEC. The registration fees have to be limited to the approximate costs of the services offered by the authorities in charge of registration. All other taxes charged by certain Member States because of the registration

of a car, independently of their denomination, are considered by the Commission as taxes covered by Article 1, paragraph 1 of Directive 83/183/EEC. According to this provision, in the particular case of transferring normal residence, an exemption from these taxes has to be granted. As a minority of Member States do not respect this obligation, the Commission has already opened or is prepared to examine opening infringement procedures against them.

(1) OJ C 108, 7.4.1998.

(2) Council Directive 83/183/EEC, of 28 March 1983, on exemptions applicable to permanent imports from a Member State of the personal property of individuals (OJ L 105, 23.4.1983).