Registration tax: will it finally go up or not?

A few days ago we told you that the Congress of Deputies had voted down the increase in the Circulation Tax proposed by the government. That amendment had been submitted by the PDeCAT and supported by the PP, ERC, Ciudadanos, VOX and the Mixed Group, and it was due to be put to a vote in the Senate.

In light of this situation, the PSOE, backed by Unidas Podemos, has submitted an amendment in the Senate to put an end to the opposition’s proposal and to repeal the fifth additional provision, approved thanks to the PDeCAT amendment, relating to the Special Tax on Certain Means of Transport. According to the PSOE, this tax not only responds to the economic capacity revealed by the registration of a means of transport, but also serves environmental considerations, since its amount is calculated based on the polluting emissions of each vehicle.

Significant price rise for new cars

Drivers and car manufacturers have been the main casualties of this tax increase, since vehicle prices have risen by 5 to 10%, which, added to the crisis caused by the pandemic, represents a severe blow for everyone.

These very strict measurement ranges, together with the entry into force of the WLTP emissions regulations that replace the former NEDC, have caused a very marked drop in sales in our country.

For this reason, the amendment proposed by the PDeCAT called for the scales of the current Registration Tax to be restored to those in force in 2020, taking into account the average percentage increase in emissions of newly registered cars due to the WLTP cycle.

Although all of this still rests with the Senate, the PSOE’s proposed amendment to the opposition creates considerable uncertainty among both drivers and vehicle manufacturers.

Proposed scales

The Registration Tax scales proposed in the PDeCAT amendment to freeze the increase are:

• Vehicles emitting less than 145 g/km of CO2 would be exempt from paying this tax.
• Vehicles emitting between 145 and 191 g/km CO2 would pay 4.75% of their value.
• Vehicles emitting between 192 and 239 g/km of CO2 would pay 9.75% of their value.
• Vehicles emitting above 240 g/km of CO2 would pay 14.75% of their value.