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Document 61988CJ0047
Summary of the Judgment
Summary of the Judgment
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1 . Tax provisions - Internal taxation - Article 95 of the Treaty - Scope - Taxation of imported products in the absence of similar or competing domestic production - Excluded - Excessive level of taxation - Not relevant - To be appraised under Article 30 et seq . of the Treaty
( EEC Treaty, Arts 30 and 95 )
2 . Tax provisions - Internal taxation - System of registration duty for used cars - No domestic production of cars - Provisions giving rise to over-taxation of imported cars in comparison with those sold on the domestic market - Incompatibility with Article 95 of the Treaty ( EEC Treaty, Art . 95 )
1 . Article 95 cannot be invoked against internal taxation imposed on imported products where there is no similar or competing domestic production . In particular, it does not provide a basis for censuring the excessiveness of the level of taxation which the Member States might adopt for particular products in the absence of discriminatory or protective effect . Such obstacles to the free movement of goods as may derive from taxation of that kind must be appraised by reference to the general rules contained in Article 30 et seq . of the Treaty .
2 . The fact that there is no domestic car production in a Member State by no means precludes a finding that the taxation of cars involves discrimination prohibited by Article 95 of the Treaty since, on the domestic used-car market, vehicles bought locally and imported vehicles constitute similar or competing products . Such discrimination derives from the use, for the registration duty charged on imported used cars, of an estimated value which is generally higher than their real value, resulting in their being over-taxed in comparison with used cars bought locally which, not being subject to duty upon resale and having been subjected, when new and put on the road for the first time, only to a duty based on their real value, incorporate in their prices only a residual value of a lower level than the said registration duty .