The European Commission has formally requested Ireland to modify how motor vehicles less than 3 months old are taxed as to make the rules comply with EU law.
The EU Court of Justice has established that a vehicle starts to lose its value as soon as it is bought or brought into use. According to EU case law on car taxation, the amount of tax due cannot exceed the amount of tax supported by similar vehicles that are already registered in the national territory and are incorporated in their value. However, under Irish legislation vehicles which are less than 3 months old or cars which have travelled less than 3000 km bear the same tax burden as new vehicles. This is a discrimination of these vehicles which are proportionally more taxed than new vehicles purchased in the country.View Fullscreen