Posted 04/16/2018 12:49 PM: 30CET
ACEA asks to adapt the taxation based on the NEDC to the WLTP to avoid tax increases
BRUSSELS, 16 Apr (EUROPA PRESS) –
Taxes linked to automobiles reach an annual value of about 413,000 million euros, according to data from the Association of European Automobile Manufacturers (ACEA), which notes that these figures are 4% higher than a year earlier.
ACEA explains that these data, included in its Tax Guide, include VAT collection, as well as sales taxes and also registration taxes, in the countries in which it is applied, including Spain. Likewise, it also includes the circulation rates, tolls and taxes on fuels.
Given these figures, the general secretary of the association, Erik Jonnaert, said that the taxation of motor vehicles generates “hundreds of billions” a year for European governments, “contributing significantly to public projects and health of the economy”.
The report prepared by ACEA highlights that there are differences in car taxation in the different countries of the European Union. Thus, it points out that several Member States base their taxes on cars on power, weight, power, displacement, capacity of the cylinders or with a combination of these aspects. In addition, other countries are incorporating taxation linked to carbon dioxide (CO2) emissions.
According to the ACEA Tax Guide, there are currently 20 Member States that link taxes to CO2 and point out that, since September 2017, these emissions are measured with the WLTP approval protocol, more rigorous than the previous NEDC, so that the results show higher emissions for the same vehicle.
“The performance of the vehicle is not affected, the increase in CO2 is the result, solely, of the technical differences between the WLTP and the NEDC, and is a reflection of the fact that the WLTP represents the driving reality better”, explains the organization.
However, it emphasizes that if the governments of the different countries apply the current fiscal scheme linked to CO2 with the new WLTP protocol, this will result in an increase in taxes. Also, remember that many European countries currently apply NEDC values and that they can decide if they adapt the values to the WLTP.
“Governments must ensure that the transition to WLTP will not have a negative impact on taxation, a failure in this could increase financial barriers to consumers and cause widespread confusion,” Jonnaert added.