The Community executive stated that, “under EU rules, no Member State can impose, directly or indirectly, on the products of the other Member States internal taxes, whatever their nature, which are higher than those which apply, directly or indirectly, on similar national products,” but Portugal continues to apply a higher tax burden to ‘second-hand’ cars imported from other Union countries.
According to the Commission, “the Portuguese legislation in question does not fully take into account the depreciation of vehicles imported from other Member States” and is therefore incompatible with the EU Treaty.
Recalling that the Court of Justice of the European Union had already concluded, on 16 June 2016, that an earlier version of this Portuguese tax was contrary to EU law, Brussels explains that the decision to refer this issue to the Court “stems from the fact Portugal has not changed its legislation to bring it into line with EU law, following the Commission’s reasoned opinion”.
Brussels recalls that it sent Portugal, on 24 January, 2019, a “letter of formal notice”, followed, on 27 November, by a “reasoned opinion”, the second and last step before filing an action with the Court of Justice, which the Commission has now accomplished “since Portugal has not yet fulfilled its obligations”.