According to a report by CNN Portugal, the government hopes to gain a further €59 million with the Vehicle Tax (ISV), which is paid when you buy a new car. The Minister of Finance, Fernando Medina, justified the value with “the prospects of market evolution”.

But the market, or at least the association that represents it, has a different perspective from the government. Helder Barata Pedro, secretary general of ACAP, does not anticipate such an accelerated growth. “Unfortunately, we may not get there”, he summarises.


Because there are several factors that negatively influence the sector. Starting with the semiconductor crisis, which is “far from being resolved”, thus limiting supply. Then there is the impact of the war in Ukraine, as exemplified by the “Ukrainian factories that stopped due to the shortage of cabling”. Finally, the uncertainty generated by fuel prices may also delay the decision of many Portuguese people to buy a new car.

Helder Barata Pedro told CNN Portugal that the market is, at this stage, “40% below the same period in 2019”, the last year before the pandemic. And the outlook for 2022 is for growth of 8% - far from the evolution indicated by the Government.