PURPOSES OF MOTOR VEHICLES, BY LIMITING THE FACTOR K TO A MAXIMUM OF 21 FOR VEHICLES WHOSE REAL POWER OUTPUT EXCEEDS 100 KW THE RULES AT ISSUE HAVE THE EFFECT OF ATTRIBUTING TO CARS WITH A MANUAL GEARBOX AND A CYLINDER CAPACITY EXCEEDING 3*109.7 CC A POWER RATING WHICH EXCEEDS 16 CV . MOREOVER, WHERE THE FACTOR K IS LIMITED THE CYLINDER CAPACITY ALONE DETERMINES THE POWER RATING FOR TAX PURPOSES . SINCE THE CYLINDER CAPACITY IS RAISED TO THE POWER OF 1.48, THE RESULT OF ANY INCREASE IN CYLINDER CAPACITY IS TO BRING THOSE CARS WITHIN THE HIGHEST TAX BANDS .
16 IT APPEARS FROM INFORMATION PROVIDED TO THE COURT BY THE PLAINTIFF IN THE MAIN PROCEEDINGS, WHICH HAS NOT BEEN CHALLENGED BY THE FRENCH GOVERNMENT, THAT NO FRENCH-MANUFACTURED CAR HAS A CYLINDER CAPACITY EXCEEDING 3*109.7 CC . CONSEQUENTLY, THE EFFECT OF LIMITING THE FACTOR K TO 21 IS TO PLACE IN THE HIGHER TAX BANDS ONLY IMPORTED VEHICLES, WHEREAS, WITHOUT SUCH A LIMITATION, THOSE CARS WOULD BE GIVEN LOWER POWER RATINGS FOR TAX PURPOSES . SUCH A LIMITATION IS NOT JUSTIFIED BY CONSIDERATIONS RELATING TO FUEL CONSUMPTION . THERE IS NO SIGNIFICANT DIFFERENCE IN THAT RESPECT BETWEEN VEHICLES AFFECTED BY THE LIMITATION OF THE FACTOR K AND OTHER COMPARABLE CARS NOT AFFECTED BY IT . IT MUST THEREFORE BE HELD THAT THAT METHOD OF DETERMINING THE POWER RATING FOR TAX PURPOSES IS NOT OBJECTIVE IN CHARACTER AND FAVOURS CARS MANUFACTURED IN FRANCE .
17 FOURTHLY, WITH RESPECT TO THE METHOD OF CALCULATING THE FACTOR K FOR CARS WITH AN AUTOMATIC GEARBOX, IT APPEARS FROM THE DOCUMENTS BEFORE THE COURT THAT THE FRENCH RULES WERE AMENDED TO TAKE ACCOUNT OF THE INTRODUCTION OF FOUR-RATIO AUTOMATIC GEARBOXES, WHICH APPEARED ON THE MARKET SUBSEQUENTLY . IT DOES NOT, HOWEVER, APPEAR THAT THOSE NEW CALCULATION METHODS HAVE ANY DISCRIMINATORY OR PROTECTIVE EFFECT IN FAVOUR OF VEHICLES MANUFACTURED IN FRANCE, IN SO FAR AS THE LATTER ARE AFFECTED TO THE SAME EXTENT AS VEHICLES IMPORTED FROM OTHER MEMBER STATES .
18 IN THOSE CIRCUMSTANCES, IT MUST BE CONCLUDED THAT THE METHOD OF CALCULATING THE DIFFERENTIAL TAX IS SUCH THAT ONLY CARS IMPORTED FROM OTHER MEMBER STATES ARE PLACED IN THE MOST HEAVILY TAXED CATEGORIES, WITHOUT ANY JUSTIFICATION BASED ON AN OBJECTIVE CRITERION . SINCE THAT SITUATION CAUSES THE OWNERS OF SUCH VEHICLES TO BEAR HIGHER COSTS, CONSUMERS ARE ENCOURAGED TO PURCHASE TOP-OF-THE-RANGE CARS MANUFACTURED IN FRANCE RATHER THAN THOSE IMPORTED FROM OTHER MEMBER STATES .
19 IN VIEW OF THE FOREGOING CONSIDERATIONS, IT MUST BE STATED THAT A SYSTEM OF ROAD TAX IN WHICH ONE TAX BAND COMPRISES MORE POWER RATINGS FOR TAX PURPOSES THAN THE OTHERS, WITH THE RESULT THAT THE NORMAL PROGRESSION OF THE TAX IS RESTRICTED IN SUCH A WAY AS TO AFFORD AN ADVANTAGE TO TOP-OF-THE-RANGE CARS OF DOMESTIC MANUFACTURE, AND IN WHICH THE POWER RATING FOR TAX PURPOSES IS CALCULATED IN A MANNER WHICH PLACES VEHICLES IMPORTED FROM OTHER MEMBER STATES AT A DISADVANTAGE HAS A DISCRIMINATORY OR