EC Directive: Bad News For Government Purse

The European Commission has called for Spain - as well as Ireland - to revise its tax structure for leased or rented vehicles from another member state, to bring it into compliance with EU legislation. The EU has stressed the need for Spain to ensure that the registration tax on these vehicles is proportionate to the duration of their registration in the country. BMI believes that the directive comes at a bad time for Spain, given that a revision to the tax structure could dent the government's overall revenues from the autos industry at a time when it is struggling

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