At a time shrouded in controversy due to the reform proposed by the Government for the Single Circulation Tax (IUC), which foresees that cars prior to 2007 will start paying the 'environmental component', data from Pordata indicates that the vast majority of cars in circulation in Portugal, more than two thirds, are aged 10 or over.
According to a report by NM, the data, which includes values ranging from 2010 to 2021, says that, in the last year recorded, there were 5,648,121 light and heavy passenger vehicles in circulation in Portugal (goods vehicles are not included).
Of these, 3,656,623 - around 64.7% of the total - were 10 or more years old in 2021.
Meanwhile, the share of passenger vehicles that are less than two years old is increasingly reduced. In 2021, 293,296 were registered in circulation, a value substantially lower than the more than 370 thousand registered in 2020 and the more than 455 thousand registered in 2019 and 2018.
The Government's proposal for the 2024 State Budget (OE2024) implies an "environmental reform of the IUC" for older cars, with the document explaining that "the IUC is increased for vehicles prior to 2007, as a complementary measure to reinforce of the renewal of national fleets". This covers around three million light vehicles (category A) and half a million motorcycles (category E).
The maximum increase is limited to 25 euros per year, which is equivalent to around two euros per month, but the executive made it clear that this limit is to increase over the years, so that the IUC "represents the totality of relative taxation to the CO2 emitted by these vehicles".
Wages in Portugal are so low that people cannot buy a new car. The price of cars in Portugal is much more expensive than in the rest of Europe.
By Pete from Algarve on 26 Oct 2023, 06:33
I am glad to read this. Driving a car as long as it is possible is a very good idea, as long as the cars are regularly inspected by Controlauto. Especially older people that need mobility, but don't make many km per year can drive the same car for many years.
By Tom from Lisbon on 26 Oct 2023, 08:16
At first glance, it would seem that this tax rise is only fair; why should old cars have such an advantage?
But consider that people who drive many km per year are likely to own newer cars, which use less fuel and break down less often. Those who drive old cars probably drive them much less, therefore not producing much pollution at all.
Every car has the tailpipe emissions checked every year, even the oldest cars on the road have to conform to the pollution standards of the time they were built.
The IUC tax is per year, not per km.
It would be more equitable, but less popular, to gain the revenue through an increase in fuel tax. Fuel is used in exact proportion to the distance driven, and is pretty close to the pollution output too.
By mark Holden from Algarve on 26 Oct 2023, 15:16
@Mark, 'Fuel is used in exact proportion to the distance driven'.
No it isn't, it depends on the fuel efficiency of your vehicle. Your remark implies all vehicles have exactly the same fuel efficiency, which is not true. If someone uses two litres of fuel to drive 40km, and my car is more fuel efficient than theirs, I might only use 1.8 litres to drive the same distance.
By Billy Bissett from Porto on 27 Oct 2023, 16:42