en 
According to the Court of Justice of the European Union (CJUE): “National legislation does not ensure that imported second-hand vehicles are subject to a tax the amount of which is equal to that of the tax charged on similar second-hand vehicles already present on the Portuguese market”.
In 2016 the Court of Justice declared that Portugal had failed to fulfil its obligations to ensure the free movement of goods between the Member States in normal conditions of competition. The court stated that: “In determining the amount of vehicle tax, the system for calculating the depreciation of the vehicles, which was applied in order to determine the taxable value of second-hand vehicles imported into Portugal from another Member State, did not take account of the depreciation of those vehicles during their first year of use or of depreciation of more than 52 percent in the case of vehicles which have been used for more than five years”.
According to the Portuguese tax code, the rates of tax charged are determined by engine capacity and an environmental clause.
“Portugal claims to have complied with the 2016 judgment by amending the code in order to increase the number of bands which are used to calculate the depreciation of second-hand vehicles imported into its territory. However, unlike the previous version of the code, the reduction rates based on the age of the vehicle now apply to only the vehicle’s engine capacity, with the environmental component being payable in full”.
According to the Commission, the result of the rules and method for calculating the tax is that a second-hand vehicle imported from another Member State is almost always taxed more heavily as compared with a similar second-hand vehicle registered in Portugal, which leads to discrimination between the two categories of vehicle.
Because of this the Court has declared that Portugal has failed to fulfil its obligations.
“Portugal claims that that situation is justified by the objective of environmental protection. It argues that the full payment of the environmental component has the aim of subjecting the admission of second-hand vehicles into Portugal to a selective criterion by applying exclusively environmental criteria, is in compliance with the ‘polluter pays’ principle”, states the court.
“Although the Member States are free to determine the rules for calculating the registration tax in a way that takes into account considerations linked to environmental protection, any form of discrimination, direct or indirect, against imports from other Member States or any form of protection of competing domestic products must be avoided.”
An action for failure to comply, directed against a Member State which has failed to fulfil its obligations under Union law, may be brought by the Commission or by another Member State.
If the Commission considers that Portugal has still not complied with the judgement then it may propose a new action which could potentially result in financial penalties.
Originally from the UK, Daisy has been living and working in Portugal for more than 20 years. She has worked in PR, marketing and journalism, and has been the editor of The Portugal News since 2019. Jornalista 7920
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Do what your masters say Portugal.
By James Smith from Porto on 02 Sep 2021, 16:10
Example: VW Passat Variant 1968cc 135g/km from 2014 Germany price €4.447
Import tax €4.013 (CM3 €1.533 CO2 €2.479). 90% tax? That's better than last year's 132% tax on same car (€5.883). No, I'm not joking.
By JD from Algarve on 03 Sep 2021, 12:16
When you see the state of old cars here, bleching out dirty black smoke, you have to wonder if they really have any environmental concerns!
By Angela Roberts from Other on 03 Sep 2021, 12:53
The Government will deny the EU again. But still want to be first in the queue when the money hand outs are given. We should be careful or we might be removed from the EU with no more hand outs.
By J from Lisbon on 03 Sep 2021, 14:02
Portugal is a nice country but unfortunately the system is full of crooks taking advantage of people who choose to live here and bring wealth into the country.. from income tax with no personal allowance if your earnings are in the UK.. you end up paying almost 10 times more tax here than you pay in the UK. As for importing a car the article speaks for itself. Even when the Portuguese tax authorities got forced to refund the road tax that was being charged at 7 times more than it should have been they only returned the last 4 years worth whilst keeping the remainder of the years they over charged. However they didn't pay any interest on the money they withheld for those 4 years!
By Jose from Lisbon on 03 Sep 2021, 21:30
Whose interest is being protected, not the environment but some fatcat corrupt politicians as newer cheaper car would be more environmentally friendly and put money in the local populations pockets to spend on goods thus benefiting the whole economy not a few vehicle retail companies the whole system stinks
By Gavin from Other on 04 Sep 2021, 09:09
So typical that Portugal as an obedient child does what Schwab wants but with car taxes which the EU rules, not that feeling of obeying orders has... Well my reaction of yesterday has not been published. We all know the truth is not to be said, R. Fuellmich will have a last say about that.
By Scarlatti from Algarve on 04 Sep 2021, 19:23
Finally some truths are published - Portugal always says yes to the EU, receives the EU funds and then pockets them into private pockets. How else can so many years of funding be justified when the country is in the state it is in? As for respecting the environment - again, only lip service. There is no respect for the environment. How to justify even the widespread littering in urban centres and in nature? How to justify the lack of decent pubic transport and over dependancy on cars? And extremely over priced cars as well.
By kimi from Algarve on 05 Sep 2021, 10:38
We've just been caught out with car custom tax. Came to Portugal last year, started to change car, wasn't told to get hold of customs until March this year. Completed on the portal for DAV and got a bill for €20,106.71 on a 15 year old €1,000 value car and it looks as though we will have to pay it. Don't know how other than to sell up and return to UK. Corruption isn't the word I'd use.
By Jill Darbyshire from Alentejo on 21 Sep 2021, 19:47
We have paid €12000 for the last 2 used we imported from the U.K. . Portugal continues to steal from us! How do I make a claim for refund?
By Marje Naismith from Alentejo on 02 Jan 2022, 16:07
Hi, what is the next step as a journalist covering this? I would suggest trying to find out who is responsible for this. Don't blame "Portugal", find the names of the politicians that need to change this. Interview them on their plans and write the next article based on that interview. If not the press will dig this bad behavior out, who will? Why is the press in this country so careful not to criticise any politician or government officials? They need to be closly monitored!
By PeO Sjöqvist from Algarve on 16 Jan 2022, 14:52