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Germany switching to federal CO2-based car tax in 2010

Germany has finally announced how it will reform its tax system to factor in CO2 emission levels. After a long political struggle between the two main parties, the SPD and the CDU/CSU, the system will not only change from being based on engine displacement to be dependent on CO2 emission levels, but will change hands. Until now, car taxes were a matter of the Länder (states). This new system is a Federal one, and the switch is blamed as the reason for the delay. The Länder will get €8.9 billion from the Federal government to ... Read more →

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