Europe's tax regimes take aim at CO2

While local governments take aim at air pollution by establishing LEZs, national governments are able to apply the full force of the tax code to influence behaviour and improve outcomes. Across Europe, countries are taking a variety of measures to improve the quality of the environment – typically by taking CO2 as a yardstick and applying a progressive tax to the emissions levels of various types of cars. 

That is the general principle, but for a fleet manager with international responsibility, it is not always easy to get an overview of the specific translation of that principle into the fiscal measures enacted by Europe's various countries. Each of which has their own specific influence on TCO for that market, and consequently may influence the choices for or against certain types of company car. 

Austria, for example, is de-incentivising diesel by no longer allowing a license duty reduction for diesel cars. Germany is on the cusp of a tax reform that could see an increase of the CO2 emission-based vehicle tax. And more, country-specific measures are being taken on CO2 by Luxembourg, the Netherlands, Portugal, the UK and even Turkey – historically slow to adopt emission-based taxation. 

To get an updated overview of CO2-based taxation across Europe, check the Fleet Europe Taxation Guide 2017. It offers structured insight into the fiscal measures undertaken by the various European countries. 

The Fleet Europe Taxation Guide 2017 is hot off the presses, and can be ordered here.

Image: Blackcat, CC BY-SA 3.0