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EU sues Malta over its legislation on annual circulation tax

EU sues Malta over its legislation on annual circulation tax
EU sues Malta over its legislation on annual circulation tax -  Copyright  Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
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AMSTERDAM - The European Commission said on Tuesday it will sue Malta over its legislation on annual circulation tax, specifically for taxing used cars purchased on the Maltese market less than used cars imported from other EU member states.

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"This discriminatory effect is not compatible with Article 110 TFEU, which prohibits discrimination against imported products," the European Commission said in a statement.

The Commission added that it formally requested Malta in June 2021 to amend, within two months, the legislation. "The response given by Malta to this reasoned opinion was not considered satisfactory."

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