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The government is creating an incentive for the scrapping of vehicles registered until 2007

The 2024 state budget proposal (OE2024) provides for the creation of a program to encourage the scrapping of end-of-life passenger and commercial vehicles registered until 2007.

According to the OE2024 report, the executive intends to create conditions for the scrapping of 45 thousand vehicles next year, a measure that will have an estimated impact of 129 million euros.

“The destroyed light vehicle will have as an incentive a monetary value assigned by the Environmental Fund, against the purchase of a new or used zero-emission vehicle (up to four years), a new combustion engine vehicle with reduced emissions, freight bicycles, or choose for the option to surrender a Mobility Card (to purchase public transport and shared mobility services),” it reads.

The executive explains that the measure complies with the Climate Law and the objectives of the Medium-Term Agreement to improve income, wages and competitiveness.

The aim is to “reduce the average age of national fleets and thus improve road safety and environmental quality”.

The main consequence of this measure is the increase of the Single Circulation Tax (IUC) for vehicles before 2007, as an additional measure to strengthen the renewal of national fleets.

Author: José Varela Rodrigues (Dinheiro Vivo)

Source: DN

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