The proposed state budget for 2024 (OE2024), presented to the Assembly of the Republic on Tuesday, proposes the “environmental reform” of the Single Circulation Tax (IUC).
According to the OE2024 report, the executive intends to achieve a balanced budget in the collection of IUC. In this sense, the government wants the taxation of vehicles from categories A and E to “meet the environmental requirements that the government wants to guarantee by introducing the environmental component (CO2 emissions) also for these vehicles”.
“The IUC seeks to burden taxpayers with the magnitude of the environmental and road costs they cause,” the document said. Now “light passenger vehicles registered after 2007 (category B of the IUC) are taxed based on engine capacity and CO2 emissions (environmental component)”, while vehicles registered before 2007 (category A) and motorcycles (category E) “are taxed solely based on engine power, without taking into account the environmental component”.
That is why the board wants to adapt the IUC collection with this reform for a universe of approximately three million category A vehicles and 500 thousand category E vehicles. An impact of 84 million euros is expected.
“The reform will have a limit of 25 euros per vehicle in 2024, which will be gradually increased until the IUC rate represents the full CO2 tax. [dióxido de carbono] emitted by these vehicles,” it says.
The measure is accompanied by the creation of an incentive program for the scrapping of cars registered before 2007, with the aim of “promoting fleet renewal and decarbonisation of passenger transport”.
Source: DN
