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Diego Zannoni
EC Tax Review
Volume 27, Issue 5 (2018) pp. 250 – 259
https://doi.org/10.54648/ecta2018027
Abstract
The diffusion of non-conventionally fuelled vehicles compared to conventional ones experienced significant constraints due to their higher cost and the lack of adequate public charging facilities. The EU, to overcome such constraints, adopted measures that encourage a shift towards more sustainable forms of mobility. In this domain EU Member States are adopting fiscal and direct incentives. The lack of coordination has nonetheless generated discrepancies among States in terms of vehicles sales. The article will focus on the relationship between fiscal and direct incentives and State aid. An assessment will verify under what conditions fiscal and direct incentives, aiming to promote clean transport, may be exempted from the general prohibition of State aid. To obtain a full picture, the impact of the freedoms of movement on tax legislation will be considered in tandem to EU provisions on discriminatory levies. The study concludes highlighting how electric vehicles cannot be axiomatically assumed to have zero CO2 emissions.
Extract
In a recent judgment the Grand Chamber of Court of Justice of the European Union (CJEU) has given new impetus to its case law on the impact of the fundamental freedoms of the Treaty on the Functioning of the European Union (TFEU) on domestic tax systems as regards the cross-border relief of ‘final losses’ suffered abroad. The present contribution looks into the different phases of development of the relevant CJEU decisions and submits a first evaluation of the new judgment and its potential consequences.
EC Tax Review