Larger Number of EU Nations Have CO2 Vehicle Tax, Promote Electric Cars

More European nations are levying carbon taxes on passenger vehicles and providing tax incentives for electric vehicles, according to a new report by the European Automobile Manufacturers’ Association. Seventeen of the 27 European Union nations now impose a tax based on carbon emissions, compared with 11 in 2007 and nine in 2006. In 2009, motor vehicles taxes of all kinds generated about €377 billion ($505 billion), or 3.4 percent of total GDP, in the 15 nations that originally made up the EU. Fifteen of the EU’s current 27 members provide incentives for electric vehicles, including tax reductions and bonus payments. “Tax measures are an important tool in shaping consumer demand towards fuel-efficient cars, and help create a market for breakthrough technologies, notably during the introduction phase,” the report says. The report recommends the imposition of a uniform carbon tax on vehicles to guarantee continued emissions reductions and maintain the integrity of the single European market.