This voluntary initiative came from Green economy policies, practices and initiatives
Registration Tax on Passenger Cars
Description/achievement of initiative
Motor vehicles in Finland are charged with both a one-time registration tax and an annual tax. The registration tax (also called car tax), which is levied on passenger cars, delivery vans and motorcycles when the vehicles are registered for the first time in Finland, was introduced in the 1950s to raise state revenue.The tax was changed in 2008 to guide consumers towards choosing car models which use less fuel.
Source: UNCSD Secretariat (2010) Questionnaire for the Member States on Experiences, Success Factors, Risks and Challenges with Regard to Objective and Themes of UN Conference on Sustainable Development (UNCSD)
"The car tax levied on passenger cars upon registration is differentiated now in proportion to the carbon dioxide emissions resulting from the vehicle's specific consumption of fuel. At the same time, the car tax was generally cut by an average of one sixth. The new taxation applies to all passenger cars. The positive impact of this CO2 differentiation is already visible in the average emissions of the new cars. Besides the registration tax motor vehicles in Finland are also subject to an annual tax (i.e. the motor vehicle tax). Passenger cars and vans using methane fuel, including biogas, are exempted from the annual tax. Since March 2011 vehicle tax will be partly based on CO2 emissions resulting from the carīs and vanīs specific consumption of fuel."