7 September 2002: The European Commission says it wants member states to phase out vehicle registration taxes in the interest of consumers. The commission says the imposition of such taxes causes distortions and double taxation.

Ten of the 15 member states currently impose VRT - Ireland's averages 25 percent and there is the additional 21 percent VAT on car purchases also - and levels amongst the states are substantially different.

The commission is to issue a document on Monday giving details of the problems caused by the taxes. It says it wants the taxes replaced by other levies, such as fuel or road taxes.

"We get consistent complaints from member of the European Parliament and the public on the difficulties they face when they move a car from one country to another," Internal Market Commissioner Frits Bolkestein told a news conference yesterday. "At the moment we have a hotch potch of regulations that is not very satisfactory."