TAX ON DIESEL-POWERED VEHICLE TO BE WITHDRAWN

The Dutch newspaper Trouw reports the appeal court in The Hague ruled an extra tax on the sale of new, heavily-polluting diesel-powered vehicles as breaking European rules and must be withdrawn.The ruling is seen as a victory for the Dutch car sector.

The court said that the fine dust tax conflicted with EU regulations which include the EU-wide introduction of a compulsory soot filter on all new diesel cars. The fine dust tax was really a rebate on a special purchase tax levied on all cars. Diesels with low fine-dust emissions became cheaper by about EUR 900, while less clean diesels became more expensive.

A spokesperson for the finance ministry said the ruling represented a setback for motorists buying clean diesels as well as for the environment. The ministry is still considering whether it will file an appeal. (expatica.com)

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October 20, 2008