Everyone can benefit from low tax on green cars, says court

The tax office is wrong to charge lower taxes on energy efficient cars because this conflicts with EU rules, a court in Haarlem said on Wednesday, the Financieele Dagblad reports.


Under EU rules, all objects liable for tax should be treated in the same way. This means a car should be taxed as a car, whether or not it is energy efficient and less polluting, the court said.
The case was brought by an entrepreneur who had to pay €1,711 a year in extra tax because he used his car privately as well as for business. But the court said he should only have to pay €958, the charge which the drivers of energy efficient cars would have to pay.
The finance ministry said immediately it is to appeal against the ruling.

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