Under national law of a Member State annual tax on cars in that Member State differentiates between cars below 16 HP (the tax rate for these cars is progressively increased up to a maximum of

Question

Quizplus · Accepted Answer

The legislation is indirectly discriminatory as it differentiates between cars based on their engine power. However, it can be objectively justified if it is necessary to protect the environment. This is because cars with higher engine power usually emit more pollution, and the tax can incentivize people to buy cars with lower emissions. Therefore, such a tax differentiation can be lawful under Article 110 TFEU if it serves an objective of public interest and is proportional to that objective.

Under National Law of a Member State Annual Tax on Cars