Car factory in Hungary (Photo: European Commission)


The EU has intervened to prevent car manufacturers from having different prices in different EU countries. The intervention has caused price increases in the countries where manufacturers have sold their cars cheaply because of high internal taxation. The EU allows the parallel import of cars and prohibits the division of markets.

Taxes vary in the EU for the registration of new cars. They can only be harmonised by a unanimous decision  of the Council of Ministers.

The EU has intervened against extra taxation on used cars when they are imported from a low-tax to a high-tax country.


See also taxation.