The European carmakers' association, ACEA, has warned that the new emissions testing standard for vehicles, WLTP, could create issues for taxation as vehicles' fuel efficiency or CO2 emissions measure changes from those under the previous NEDC testing standard.
ACEA points out that some 20 EU member states currently tax vehicles based on their CO2 emission levels. Since September 2017, these emissions are measured using a new lab test, WLTP. As this new test is more rigorous than the old one (NEDC), it results in a higher CO2 value for a specific vehicle. The actual performance of the car itself is not affected: the increase in CO2 is due only to the technical differences between WLTP and NEDC, and is a reflection that WLTP 'better represents driving reality'.
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ACEA warns that if national governments simply apply their existing CO2-tax schemes to the new WLTP values, they could put a new car type introduced to the market after September 2017 in a higher tax band than a similar car with NEDC values which came on the market before that date. Today, national tax regulations continue to be based on NEDC values, and each member state can decide when it will implement the shift to WLTP. The earliest WLTP taxation will be applied is from July 2018 (eg Denmark).
ACEA Secretary General, Erik Jonnaert said: "Governments must ensure that the transition to WLTP will not negatively impact vehicle taxation. A failure to do so could increase the financial burden on consumers and lead to overall confusion."
ACEA's taxation concerns come as diesel's share of the new car market in Europe continues to decline, reflecting uncertainty over future tax levels in the wake of adverse publicity over underestimated toxic emission levels in city centres, inadequate vehicle testing regimes and VW's 'dieselgate' scandal.
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