Forum Contribution: From Discriminatory Fiscal Treatment to Reverse Discrimination? Portuguese Taxation of Second-Hand Vehicles under Article 110 TFEU

The Portuguese legislation on the taxation of imported used vehicles has led to a continuous interplay between the European Commission, the European Court of Justice, and the national legislator. The Portuguese national budget for 2025 brings us the latest development on this matter, with several amendments to the Vehicle Tax Code coming into effect on the 1 January 2025. With this latest legislative amendment, the Portuguese legislator has been successful in eliminating the discriminatory taxation of imported hybrid vehicles from the European Union. However, this legislative solution will result in situations of ‘reverse discrimination’, since domestic vehicles will be subjected to less favourable taxation rates than vehicles imported from the European Union.