The measure that increases the IUC of cars prior to July 2007 will result in an increase of around 400% in a petrol car with 900 engine capacity, compared to the amount paid in 2023, according to calculations by Deloitte and reported by ECO.
According to the consultant, a car with those characteristics and with registration dated May 2005, paid 19.34 euros in Single Circulation Tax this year but will see the IUC reach 96.92 euros (an increase of 401%).
At issue is a measure included in the State Budget proposal for 2024 (OE2024) that changes the taxation rules, in terms of IUC, for category A vehicles registered before 2007 and motorcycles (category E), determining that these are no longer taxed solely based on engine capacity (as is currently the case), but the environmental component is now considered.
The OE2024, however, contains a safeguard clause, determining that the increase in tax cannot, each year, rise by more than 25 euros. “IUC collection, relating to vehicles in categories A and E, resulting from the changes made by this law, cannot increase, annually, by more than 25 (euros) per vehicle”, reads the OE2024 law proposal.
Thus, that gasoline car, with 900 engine capacity, will pay around 44 euros in IUC in 2024, reaching in 2027 the tax value equivalent to a car with the same characteristics, but with registration after July 2007. The same Simulations show that a diesel car, with registration from January 2006 and 1995 engine capacity, for example, will see the IUC rise by around 430%, going from 45 euros paid in 2023 to 231 euros with the new rules.
The measure has led to the launch of a public petition against this worsening of the IUC, which already has more than 163 thousand signatures.
Related article - Petition launched to stop increase in car tax for old cars
As those cars are very polluting it's time to get rid of them. Or tax them even more.
By Lior from Lisbon on 18 Oct 2023, 10:18
How does one say "Daylight robbery" in Portuguese?
By CES from Algarve on 18 Oct 2023, 11:43
Let's have less dramatic headlines please. It's a 400% increase from a tiny base of €19, a peppercorn amount. The increase in car tax is only €77 per year, less than €6.50 per month, hardly something to bankrupt you. I pay just over €100/year for a 1000cc petrol car that barely pollutes. I don't see why others' car taxes shouldn't be raised to the €100 zone, or more if applicable.
By Billy Bissett from Porto on 18 Oct 2023, 18:35
Giving more money to the government will change the weather.
By Quentin Ferreira from Lisbon on 18 Oct 2023, 19:07
The carbon footprint of making a small to mid-sized new car is on the order of 10-15 tons CO2 before traveling a single km. So for all the sheep out there, no, there is no environmental justification to replace old cars with new.
By Grok from Porto on 20 Oct 2023, 08:37