New campers pay an average of another 10,000 euros to the State – not counting the 23% VAT – if the increase in the incidence of the Motor Vehicle Tax (ISV), from 30% to 100%, for those vehicles gets the green light from Parliament at the last general vote, the date of which has yet to be determined. The government’s proposal has already passed the first stage: on Friday the 17th it was generally accepted with only favorable votes from the PS.
PCP, BE and Chega voted against, while PSD, IL and PAN abstained. With an absolute socialist majority, final approval is guaranteed unless the ruling party decides to change the document.
The negative impact of the increase in the ISV, which is charged when purchasing a new vehicle, on the motorhome industry and on the sectors related to it, namely hospitality and tourism, is contained in a study by the Automobile Association of Portugal (ACAP) to which DN / Dinheiro Vivo had access and which will be presented this Thursday in the parliamentary budget and finance committee. This hearing kicks off the debate, in the specialty, on the executive’s proposal.
Helder Pedro, secretary general of ACAP, summarizes for DV the most important conclusions from the survey to which more than three thousand members responded: “At the moment, a citizen who buys an ISV-paid camper costs on average around three thousand euros, with the of the tax, that value will increase by more than 10 thousand euros”.
“For merchants it is estimated that the additional costs could amount to around 600,000 euros if they decide to absorb this price increase that will be charged to the end customer,” reveals Helder Pedro based on ACAP’s research. According to the survey, “orders confirmed by companies that will be received in 2023 for sale and rental amount to more than 12 million euros and the average impact on the price of these vehicles is at least 15%”. The same document concluded that “companies are unable to find financing solutions to record the inventory they hold in-house due to the sudden change in legislation related to the ISV in a short period of time”. For this reason, Helder Pedro considers “this change in tax collection, which goes from 30% to 100%, to be excessive”, and asks the deputies to “discuss other ways to reduce the benefit without compromising a sector already so affected by the pandemic and the crisis of semiconductors and commodities”.
Campers support restaurants and local businesses
In environmental terms, the ACAP study indicates that “more than 80% of users drive only up to 10,000 kilometers per year, mostly on weekends and holidays, without getting stuck in traffic”, showing that motorhomes are less of a burden on the environment than other sectors.
From a local trade point of view, ACAP warns of “the loss of revenue if the future of motorhomes is called into question”. The research carried out shows that the vast majority (78%) of caravaners spend an average of between 11 and 50 euros per day and per person, not including fuel. According to the same study, most costs are incurred in restaurants and local businesses.
Agricultural diesel continues to benefit from the intermediate VAT rate of 13%. Any discounts on the ISP will have to be recorded by the Finance and Energy departments.
The RV ISV increase is part of a broader government legislative package to eliminate or reduce tax breaks. Among other measures, there has also been an increase in the incidence of ISV, from 95% to 100%, for vehicles manufactured before 1970.
In addition, colored and branded oil is no longer included in the VAT intermediate rate list (13%) and is now subject to the normal rate of 23% and the reduced ISP rate for colored and branded oil and heating oil.
However, the tax on colored diesel, also known as agricultural or green diesel, is enforced at the intermediate VAT rate (13%). The reduced ISP rate will be applied if determined by decree of the members of the government responsible for the Finance and Energy domains, according to the same diploma. This means that there will be no tax increase for agricultural diesel.
However, if any proposals come along in this regard, the PSD wanted to make it clear in a statement sent on Wednesday that “it opposes any increase in agricultural diesel and will never approve any changes that would allow for such an increase”.
Debate on the specialty begins Thursday with the ACAP audition. Deputies have until Monday the 27th to send requests for hearings or written opinions to entities and then there will be a yet-to-be-determined deadline to submit amendments to the government proposal, Social Democratic deputy Hugo Carneiro revealed to DV.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
