Under the current system, aligned with EU rules (WLTP), new and environmentally advanced vehicles are subject to higher taxation, while used cars benefit from significant tax reductions. This discourages the purchase of new cars and encourages imports of older, more polluting vehicles, leading to higher environmental damage, healthcare costs, and challenges in meeting climate goals. AmCham therefore proposes reducing the CO₂ tax component for WLTP-tested vehicles by 30% and eliminating depreciation-based reductions for used cars, encouraging cleaner technologies while maintaining state budget revenues.