Wednesday 20 June 2007

The First EU Tax - Car Emmisions?

With all the talk of red lines and resistance this week, I thought it may be of interest to you to understand where my hunch is that the EU will move first on tax harmonistaion.

The choice of a Green tax is quite obvious. The adoption of the climate change agenda is a great advance for statist undemocratic EU and will now enable it to use moral pressure to insist on member states following its guidelines.

To this end the EU has been keenly building its array of Environmental legislation. The key part of this for me is here. These are the criteria that specify frankly unrealistic reductions in light vehicle emissions starting in 2008.

The Labour Government was very enthusiastic about this and Gordon Brown adopted all of these changes in the last budget.

Already the leasing industry and wider motoring industry is preparing for the change, which massively effect the market, particularly if you have a polluting second hand vehicle to sell next year.

Why I think this will be the first EU tax is the sheer impracticality of the laws. There will not be a way to actually make this happen, so instead there will be a 'harmonisation' of taxes across the EU states on light vehicle emission. This will all be disseminated in the context of the global 'war on climate.' Also, the EU has clearly been building to this, see this link where the picture is borrowed from and the guidelines on registration. The last paragraph is a usual denial of the blindingly obvious.

That is my guess, harmonisation by the back door through regulation and using the environment as cover.

No taxation without representaion?


Old BE said...

Taxes paid direct to the EU would, of course, be hard to tally with a vote against them as you suggest and a constitutional nightmare!

But there are already taxes going directly to Brussels - the import taxes go direct to the EU and also a fixed proportion of VAT receipts do too - which is why the EU is always batting for VAT to be put on things like tampons and food and the UK government had to ask permission for a reduction on fuel back in 97 and condoms recently.

It also means that when the government wants to increase its income from VAT it has to raise the rate more than it needs to - because some goes to Brussels.

Correct me if I am misinformed!!

Trubes said...

You boys really must get out more !

Trubes said...

You boys really must get out more !

CityUnslicker said...

Ed you are right, but VAT is still collected by the UK so really this is a hypothecated tax.

I think with green emmissions the taxes will become direct.

You are right about import taxes though.

CityUnslicker said...

TB - We won't be able to when they tax our cars away!

Anonymous said...

It's only a matter of time, I'm sure.

Crushed said...

You may be right.

What worries me is that we'll get witholding tax at some point.

CityUnslicker said...

Ellee- well I hope not, but this is one to look out for.

CityUnslicker said...

Hitch I don't belive for a second the 50's were so great!

Still, I bet the car workers vote labour, they can't get enough punishment!

Anonymous said...

Why do you bother lying, Hitch?

Did you delete your blog before or after Google took it away from public view and left a message to that effect.

You forgot me in your little list and I am Chinese. I provide all your take-aways. You would starve without me.

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