European Parliament legislative resolution on the proposal for a Council directive on passenger car related taxes (COM(2005)0261 - C6-0272/2005 - 2005/0130(CNS))
Date: 2006-09-05
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: consumer protection, motor car, pollution control measures, public awareness campaign, tax harmonisation, vehicle tax

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Article 17

Publication of projects

The Commission shall, together with the Member States, publish annually a list of the projects financed
under the programme together with a brief description of each project.

Article 18

Transitory measures

Decision No 803/2004/EC is repealed.

Actions started before 31 December 2006 pursuant to that Decision continue to be governed, until their
completion, by it. The committee provided for in Article 7 thereof shall be replaced by the one provided for
in Article 11 of this Decision.

Article 19

Entry into force

This Decision shall enter into force on the twentieth day following that of its publication in the Official
Journal of the European Union. It shall apply from 1 January 2007.

Done at …, on …

For the European Parliament
The President

For the Council
The President

P6_TA(2006)0334

Passenger car related taxes *

European Parliament legislative resolution on the proposal for a Council directive on passenger car
related taxes (COM(2005)0261 — C6-0272/2005 — 2005/0130(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2005)0261) (1),

— having regard to Article 93 of the EC Treaty, pursuant to which the Council consulted Parliament

(C6-0272/2005),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of
the Committee on the Environment, Public Health and Food Safety and the Committee on Transport
and Tourism (A6-0240/2006),

(1) Not yet published in OJ.

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1.

Approves the Commission proposal as amended;

2.

Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

Calls for initiation of the conciliation procedure under the Joint Declaration of 4 March 1975 if the

4.
Council intends to depart from the text approved by Parliament;

Asks the Council to consult Parliament again if it intends to amend the Commission proposal sub-

5.
stantially;

6.

Instructs its President to forward its position to the Council and the Commission.

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 30

Recital 1

Passengers car taxation can be an important complemen-
(1)
tary tool to support environmental objectives, in particular in
relation to the reduction of greenhouse gas emissions and it is
appropriate, therefore, to introduce a carbon dioxide based ele-
ment in the tax bases of both registration taxes and annual cir-
culation taxes. However, in order to contribute to meeting the
commitments made by the Community and its Member States
under the Kyoto Protocol, the proposed elements directly relat-
ing to carbon dioxide emissions should be inserted in the tax
bases of the passenger related taxes applied during the commit-
ment period from 2008 to 2012. As the Community's strategic
objective to reduce the carbon dioxide emissions from passenger
cars needs to be achieved by 2010 at the latest, it is appropriate
to apply fully the carbon dioxide based element by 31 Decem-
ber 2010.

Passengers car taxation can be an important complemen-
(1)
tary tool to support environmental objectives, in particular in
relation to the reduction of greenhouse gas emissions and it is
appropriate, therefore, to introduce a pollutant and fuel effi-
ciency based element in the tax bases of both registration taxes
and annual circulation taxes. However, in order to contribute to
meeting the commitments made by the Community and its
Member States under the Kyoto Protocol, the proposed elements
directly relating to carbon dioxide emissions should be inserted
in the tax bases of the passenger related taxes applied during
the commitment period from 2008 to 2012. As the Communi-
ty's strategic objective to reduce the carbon dioxide emissions
from passenger cars needs to be achieved by 2010 at the latest,
it is appropriate to apply fully the carbon dioxide based element
by 31 December 2010.

Amendment 2

Recital 2

(2) The third pillar of the Community's strategy to reduce car-
bon dioxide emissions from passenger cars and improve fuel
economy, endorsed by the Council in 1996, consists of fiscal
measures and is the only pillar which has yet to be implemen-
ted at Community level.

(2) The third pillar of the Community's strategy to reduce
pollutant emissions from passenger cars and improve fuel
economy, endorsed by the Council in 1996, consists of fiscal
measures and is the only pillar which has yet to be implemen-
ted at Community level.

Amendment 3

Recital 3

(3) Member States should be encouraged to apply coordinated
fiscal
incentive for passenger cars that fulfil stricter emission
limits than those which became mandatory under Directive
98/69/EC (Euro 4), relating to measures to be taken against air
pollution by emissions from motor vehicles and amending

(3) Member States should be encouraged to apply coordinated
fiscal
incentive for passenger cars that fulfil stricter emission
limits than those which became mandatory under Directive
98/69/EC (Euro 4), relating to measures to be taken against air
pollution by emissions from motor vehicles and amending

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TEXT PROPOSED
BY THE COMMISSION

Council Directive 70/220/EEC, to expedite the placing on the
market of passenger cars which satisfy future requirements to
be adopted at Community level (Euro 5).

Tuesday 5 September 2006

AMENDMENTS
BY PARLIAMENT

Council Directive 70/220/EEC, to expedite the placing on the
market of passenger cars which satisfy future requirements to
be adopted at Community level (Euro 5). In addition to the
carbon dioxide-based element introduced by this Directive, the
Member States may introduce differentiated taxation based on
polluant emissions and the Euro classification into their
national motor vehicle taxation systems.

Amendment 4

Recital 3a (new)

(3a) Member States are strongly urged to refrain from
imposing double taxation in the case of passenger car regis-
tration taxes; particular consideration should be given to the
case of EU citizens returning to their country of origin after
spending more than two years in another Member State.

Amendment 5

Recital 3b (new)

(3b) Member States should also be encouraged to apply coor-
dinated fiscal incentives for passenger cars in order to expedite
the placing on the market of passenger cars and vehicle
equipment
that meet energy-saving and energy-efficiency
requirements, whether the power source used is fossil fuel,
such as petrol, diesel, or LPG, alternative fuel, such as bio
fuel, natural gas, or hydrogen, or electrical energy, including
hybrid engines.

Amendment 6

Recital 3c (new)

(3c) Member States should have the opportunity, in addition
to the carbon dioxide-based element, of continuing to differ-
entiate between categories of pollutants in accordance with
Council Directive 70/220/EEC of 20 March 1970 on the
approximation of the laws of the Member States on measures
to be taken against air pollution by emissions from motor
vehicles (1) (Euro norms) as a basis for calculating annual circu-
lation tax and registration tax.

(1) OJ L 76, 6.4.1970, p. 1. Directive as last amended by Commission

Directive 2003/76/EC (OJ L 206, 15.8.2003, p. 29).

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TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 7

Recital 4

(4)
It should be possible for fiscal incentives to take the form
of tax differentiation of passenger car related taxes, applied on
the basis of the amount in grams of carbon dioxide emitted per
kilometre by each particular car.

(4)
It should be possible for fiscal incentives to take the form
of tax differentiation of passenger car related taxes, applied on
the basis of emissions of pollutants in the form of nitrogen
oxides and soot particles by each particular car as well as
their carbon dioxide emissions, measured in grams per kilo-
metre, and their fuel consumption, calculated in litres per
100 kilometres in accordance with the parameters laid down
by Commission Directive 1999/100/EC of 15 December 1999
adapting to technical progress Council Directive 80/1268/EEC
relating to the carbon dioxide emissions and the fuel con-
sumption of motor vehicles (1).

(1) OJ L 334, 28.12.1999, p. 36.

Amendment 9

Recital 5a (new)

(5a) The tax differentiation established in implementing this
Directive should be taken into account in the forthcoming
review of Directive 1999/94/EC of the European Parliament
and of the Council of 13 December 1999 relating to the avail-
ability of consumer information on fuel economy and CO2
emissions in respect of
the marketing of new passenger
cars (1) in order to ensure the provision of consistent informa-
tion to prospective car owners.

(1) OJ L 12, 18.1.2000, p. 16. Directive as last amended by Regula-

tion (EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

Amendment 10

Recital 6

(6)
In the internal market, tax obstacles to the free movement
of persons and of their personal property, including passenger
cars, should be removed. The present Directive aims at remov-
ing such obstacles by means of restructuring passenger car
related taxes applied by Member States, without obliging them
to introducing any new taxes.

(6)
In the internal market, tax obstacles to the free movement
of persons and of their personal property, including passenger
cars, should be removed. The present Directive aims at remov-
ing such obstacles by means of restructuring passenger car
related taxes applied by Member States, without obliging them
to introducing any new taxes and in accordance with the prin-
ciple of budget neutrality.

Amendment 12

Recital 8a (new)

(8a) The abolition of registration taxes has a beneficial
effect on road safety and the environment since it leads to a
more rapid renewal of the car fleet. The reduction in the cost
of purchase is an incentive to replace old vehicles with safer,
less polluting, more fuel efficient vehicles. The principle of

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TEXT PROPOSED
BY THE COMMISSION

Tuesday 5 September 2006

AMENDMENTS
BY PARLIAMENT

taxing the use and environmental impact of a vehicle is in line
with the fundamental principle of the Community's environ-
mental policy which requires the polluter to bear the costs of
environmental damage.

Amendment 13

Recital 10

(10)
It is appropriate that, where applicable, the refund sys-
tems for both registration and annual circulation taxes be intro-
duced without delay, in order to avoid distortions and different
tax treatment of passenger cars.

(10)
It is appropriate that, where applicable, the refund sys-
tems for both registration and annual circulation taxes be intro-
duced without delay, in order to avoid distortions and different
tax treatment of passenger cars. The transaction costs asso-
ciated with the payment of registration taxes should be
reduced by setting up one-stop online solutions for the calcu-
lation, refund and payment of car registration taxes when
moving between Member States.

Amendment 40

Recital 11a (new)

(11a)
In the interest of preserving classic and old vintage
vehicles, nothing in this Directive shall inhibit the right of
Member States to exempt vehicles of at least 20 years of age
from circulation taxes.

Amendment 14

Recital 13a (new)

close

consideration the

(13a) Taking into
cooperation
between several Member States on the one hand and European
Economic Area-European Free Trade Association countries
(EEA-EFTA countries) on the other, and in order to ensure a
higher level of cooperation, especially in the field of environ-
mental protection, it is recommended that the relevant provi-
sions be extended to the EEA-EFTA countries in question.

Amendment 15

Recital 14

(14)
Since the objectives of improving the functioning of the
internal market in the area of passenger cars, and of the success-
ful use of fiscal measures in order to implement the Communi-
ty's strategy to reduce carbon dioxide emissions from passenger
cars cannot be sufficiently achieved by the individual Member
States and can therefore, by reason of the scale or effects of
the action, be better achieved at Community level, the Com-
munity may adopt measures, in accordance with the principle
of subsidiarity as set out in Article 5 of the Treaty. In accor-
dance with the principle of proportionality, as set out in that
Article, this Directive does not go beyond what is necessary in
order to achieve those objectives,

(14)
Since the objectives of improving the functioning of the
internal market in the area of passenger cars, and of the success-
ful use of fiscal measures in order to implement the Communi-
ty's strategy to reduce polluting emissions from passenger cars
cannot be sufficiently achieved by the individual Member States
and can therefore, by reason of the scale or effects of the action,
be better achieved at Community level, the Community may
adopt measures, in accordance with the principle of subsidiarity
as set out in Article 5 of the Treaty. In accordance with the
principle of proportionality, as set out in that Article, this Direc-
tive does not go beyond what is necessary in order to achieve
those objectives,

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TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 16

Article 1, paragraph 1

This Directive lays down the rules for calculation of taxes on
passenger cars, on the basis of their emissions of carbon diox-
ide.

This Directive lays down the rules for calculation of taxes on
passenger cars, on the basis of their polluting emissions such
as carbon dioxide.

Differentiation by reference to carbon dioxide emissions

Differentiation by reference to carbon dioxide emissions, fuel
consumption and pollutant emissions

Amendment 17

Article 4, title

Amendment 20

Article 5, paragraph 1, subparagraph 1a (new)

The Commission shall present, by 31 December 2006, a study
on the weight that should be given to other possible factors in
setting the tax base for passenger car tax.

Amendment 21

Article 5, paragraph 2

2.
By 31 December 2010 the total tax revenue from the car-
bon dioxide-based element of the annual circulation taxes shall
account for at least 50 % of the total revenue from these taxes.

2.
By 31 December 2010 the total tax revenue from the ele-
ment of the annual circulation taxes based on carbon dioxide
emissions, fuel consumption and pollutant emissions shall
account for at least 50 % of the total revenue from these taxes.

Amendment 22

Article 9, paragraph 1a (new)

In order to reduce the transaction costs associated with the
payment and refund of registration taxes, Member States
shall, under the coordination of the Commission, set up a
joint one-stop online solution for the calculation, refund and
payment of car registration taxes available to EU residents
moving to any Member State.

Amendment 23

Article 10, paragraph 2

In order to determine the residual value of a passenger car
2.
for the purposes of paragraph 1, Member States may apply dif-
ferent methods, such as assessments, expert examinations or the
use of fixed scales.

In order to determine the residual value of a passenger car
2.
for the purposes of paragraph 1, Member States may apply dif-
ferent methods, such as assessments, expert examinations or the
use of fixed scales. Stakeholders, including consumer organisa-
tions, shall be fully and regularly involved in what must be a
fully transparent process.

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TEXT PROPOSED
BY THE COMMISSION

Tuesday 5 September 2006

AMENDMENTS
BY PARLIAMENT

Amendment 24
Article 10, paragraph 3, point (a)

(a)

the scales are established on the basis of general and objec-
tive criteria, which shall be laid down;

(a)

the scales are established on the basis of general and objec-
tive criteria, which shall be laid down, duly publicised and
regularly updated;

Amendment 25
Article 13

Until 31 December 2015, where registration taxes have been
maintained, tax differentiation shall be applied on the basis of
the number of grams of carbon dioxide emitted per kilometre
by each particular passenger car.

Until 31 December 2015, where registration taxes have been
maintained, graduated progressive tax differentiation shall be
applied to each particular passenger car on the basis of its
carbon dioxide and pollutant emissions, measured in grams
per kilometre, and its fuel consumption, calculated in litres
per 100 kilometres in accordance with the parameters laid
down by Directive 1999/100/EC.

Amendment 28
Article 15

Member States shall communicate to the Commission the tax
bases and the tax levels of registration and annual circulation
taxes as applied on 1 January each year, and following each
change in national law.

Member States shall communicate to the Commission the tax
bases and the tax levels of registration and annual circulation
taxes as applied on 1 January each year, and following each
change in national law. In addition, Member States shall com-
municate to the Commission any measures taken to differenti-
ate company car taxation based on fuel efficiency. The Com-
mission shall
facilitate the exchange of best practice by
publishing, on-line, a comparative report of the approaches
taken by each Member State.

Amendment 29
Article 16

No later than 1 January 2011, and every five years thereafter,
the Commission shall, after consulting the Member States, pre-
sent to the Council and to the European Parliament a report on
the application of this Directive.

No later than 1 January 2011, and every five years thereafter,
the Commission shall, after consulting the Member States, pre-
sent to the Council and to the European Parliament a report on
the application of this Directive and shall evaluate in particu-
lar the application of Articles 4 and 5.