Tax rate for diesel-fuelled cars should be six times that for petrol, says panel

The panel of experts brought together to make recommendations on Brussels’ reform of vehicle registration and taxation have submitted their final report. Among the suggestions are to increase the tax on cars that run on diesel and relieve electric car owners of paying any tax at all.

Auto tax rates are today based on the size of the motor. The region wants to reform the system to discourage the purchase of polluting vehicles while rewarding consumers who make more sustainable choices.

New calculations of fees and taxes should take account of the European emission norms that rate cars from 0 to 6, as well as the kind of fuel used and the CO2 emissions. A newer diesel-fuelled vehicle (Euro 6) would be taxed some €300 a year, while petrol vehicles would be charged about €50.

Electric and hybrid cars, on the other hands, would be exempt from both registration fees and taxes. The panel also suggests a per-kilometre fee be levied on cars, but that would only be feasible with an agreement with the other two regions.

The report was commission by Brussels finance minister Guy Vanhengel, who will now set to work on the reform proposal.