The annual taxation applicable in Portugal to imported second-hand vehicles has been sharply criticised by Brussels which accuses Portugal of not taking into account the actual depreciation of vehicles.
The European Commission "formally calls on Portugal to amend its legislation on imported used cars.”
A statement issued today from Brussels read that the calculation of the taxable value of used vehicles does not take into account their capital depreciation.
"This may lead to a greater tax to that applied to vehicles purchased on the domestic market" adds the document which explains that "the Commission's request is a reasoned opinion," which is formal Euro-speak for the second stage of an infringement procedure.
"In the absence of a satisfactory response within two months, the Commission may bring an action against Portugal in the European Court of Justice."
Exit tax
The European Commission also announced that it has filed a lawsuit against Portugal in the European Court of Justice (ECJ) over Portuguese taxation rules for those individuals leaving the country.
At issue is the "discrimination against taxpayers who cease to be resident in the country," argued the Commission in a statement on major infringement proceedings taken in January.
"The Commission considers it (exit taxation) incompatible with the right of citizens to free movement as enshrined in the EU Treaties,” reads the document.
The Commission explains that under Portuguese law taxpayers who cease to reside in Portugal are subject to immediate taxation in cases where they sell shares or transfer assets to a company overseas related to the exercise of an economic or professional activity.
These taxation rules penalise people who decide to leave Portugal or transfer assets abroad and discourages them from exercising their right to freedom of movement.
Oil spills
Brussels presented another reasoned opinion that criticised Portugal for the "absence of ratification of the Convention on compensation for damages resulting from oil spills.”
The Commission advises that in Portugal "there is no protection for victims of oil pollution caused by an oil spill in Portuguese waters," and notes that the Convention has been adopted and ratified by 74 countries including the 27 Member States.
Portugal and France topped the list of countries with infringement proceedings in January, with five cases each.
