EC report reveals inter-country comparison of company car taxation and its impacts

Fri 02 July 2010 View all news

A recent study, published by the European Commission evaluates the impacts of company car taxation on vehicle purchase decisions across Europe. Company cars account for roughly 50 percent of all new sales of cars in the EU.

Company cars are defined as passenger light-duty vehicles, which companies lease or own and which employees use for their personal and business travel.This study reviews the extent to which the current taxation of company cars artificially promotes the use of such cars beyond its underlying merits.

The study presents new,  EU-wide estimates of the level of subsidies to company cars.In addition it also provides some preliminary rough illustrations of the possible effects of such subsidies on economic welfare and environment and discuses the policy implications.


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