Segnalazione dalla Newsletter area Tax and Customs

European Commission publishes study on tax treatment of company cars

Company cars account for 50% of cars sold in the EU. 

The tax treatment they receive in EU Member States is the subject of a study (Taxation Paper No 22) published by the European Commission on 7 June 2010.

The study, carried out for the Commission by Copenhagen Economics, examines the extent to which the EU Member States subsidise the use of company cars through their tax systems, and what kind of fiscal, environmental and economic consequences this may have.

It shows that the under-taxation of company cars is widespread within the EU, and the fiscal loss could amount to € 54 billion for the EU as a whole. 

It also has negative environmental consequences, since it increases the number of cars, encourages driving and favours bigger cars with higher emissions. 

Due to those combined effects CO2 emissions in the EU are 21 to 43 million tonnes higher than they would be without company car subsidies.