Hungary’s vehicle tax applied to Turkish vehicles crossing its territory conflicts with the EEC-Turkey association agreement, a top European court said on Thursday.
The Court of Justice of the European Union said in a preliminary ruling that the tax has the “equivalent effect to customs duties”, which the European Economic Community association agreement with Turkey bans.
Turkish company Istanbul Lojistik had argued the tax on its lorries crossing Hungary to Germany was incompatible with the EEC agreement.
In 2016, Hungary asked the EU court to rule on the matter.
The association agreement bans “customs or duties of equivalent effect to customs duties” imposed unilaterally and solely because the goods have entered the territory of an EU member state.