EU car tax plan to be opposed
MEPs back pollution tax but UK Treasury against harmonisation
The UK Government is set to maintain its opposition to tax harmonisation in the EU despite a vote by MEPs to standardise national vehicle taxes.
If measures agreed in the European Parliament were approved in the member states, motorists would pay a common tax based on carbon dioxide emissions. Supporters of the scheme say that as well as cutting pollution, a standard tax would mean lower cross-border administrative costs.
However the Treasury continues to take the longstanding UK line that tax is an issue for the individual member states.
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