According to Postal newspaper, which cites ACP data, "Portugal had 5.3 million light passenger vehicles in circulation in 2021. Of the total, 63% of these were over 10 years old, and 1.2 million were over 20 years old."

Adding that, "It is already known that the incentive values ​​will not be the same in all cases, but, on average, they should be around three thousand euros. The value of the incentive will be set by the Environmental Fund and the Government's estimate is that 45 thousand end-of-life vehicles will be delivered for scrapping in 2024."

To receive this benefit, owners of passenger or commercial vehicles registered before 2007 must meet one of the conditions required by the Government:

  • Purchase of a new or used zero-emission vehicle, with a maximum of four years;
  • Acquisition of a new internal combustion vehicle with reduced emissions;
  • Acquisition of cargo bikes;
  • Deposit on a Mobility Card, which can be used to purchase public transport and shared mobility services.

A vehicle that is not roadworthy, whether due to an accident, a breakdown, its precarious condition or any other reason, is classified as an End-of-Life Vehicle (EVV). The procedure for dismantling an EVV is free of charge if the vehicle is intact, otherwise, additional expenses may apply.

Regarding the IUC, the Government will move forward with an environmental reform that will increase the value of the tax by up to 25 euros for vehicles registered before 2007, according to the proposal in the State Budget for 2024 (OE2024).

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