Factsheets - No.2: European Motoring Taxes Comparison

Total Costs of Taxation

• British drivers are taxed at the European average and pay similar costs to drivers in Finland, Denmark, Ireland, Italy and France.
• In the Netherlands, motorists are taxed on average 50% more than UK drivers, in Luxembourg they are charged on average 45% less.
• British drivers of 1600cc or 1000cc vehicles rank fifth overall. Those with a 2000cc car pay the ninth highest taxes.

Car Ownership Taxation

• For 1000cc cars, the UK has the fifth lowest ownership tax, paying less than either France or Italy.
• For 1600cc cars, British drivers are in a median position and are ranked seventh overall.
• For 2000cc cars, tax is low with Britain paying the fourth cheapest prices.

Car Use Taxation

• The UK tax system focuses on car use rather than car ownership, with British drivers paying significantly higher car use charges than they do in ownership charges.
• For drivers of 1000cc cars, UK has the third highest taxes, lower than France and Italy.
• British drivers of 1600cc vehicles are in a group of the highest taxed countries in which the UK is second above France.

• User taxation for 2000cc is similar in the UK, Italy, France and the Netherlands who together form the higher paying group.

Notes:
These findings are from new research which compares levels of taxes and charges paid by motorists in 14 countries. It is based on annual taxation of car ownership, car use, petrol, car purchase, tolls, excise duty and VAT. Figures are based on cars with an average life of 14 years and appear as £ per annum (expressed in PPP, 2000^*). It is available on the CfIT website at: http://www.cfit.gov.uk.

* PPP (Purchasing Power Parities) is the recognised means within the EU of calculating conversion rates by eliminating differences in price levels between countries.

See: Press Notice: UK Motoring Taxation Near European Average

Return to: European comparison of taxes on car ownership and use index