More than 1,100 million to encourage "eco" vehicles and scrap the old ones

More than 1,100 million to encourage "eco" vehicles and scrap the old ones

The Government will allocate 2,634 million euros to boost the automotive sector in Spain through the Strategic Plan of Comprehensive Support to the Automobile Sector until 2025. The project, presented today by the Minister of Industry, Commerce and Tourism, Reyes Maroto, will start immediately and will have a short-term allocation, between 2019 and 2020, of 515 million euros. Maroto stressed that the project is "the result of work developed jointly for nine months by the Government, the sector and social agents."

It is expected that this public investment will be accompanied by higher spending by manufacturers in terms of R & D, a "drag" effect that the Executive estimated at 9.726 million euros between 2019 and 2025, of which 2.283 million would be in the next two years. The Ministry of Industry foresees that the impact of the plan will also materialize in lower costs derived from productivity improvements, improved transport sustainability, reduced fuel imports, increased electricity consumption, health effects of the public system and fiscal effects, among others.

The project will try to lead the sector to a new model of sustainable mobility. However, two of its main measures to rejuvenate the car park were already in operation before the arrival of Sanchez to La Moncloa. The Moves and Movea plans, aimed at encouraging the purchase of alternative energy vehicles, are included in the General State Budgets of 2018, approved by the Government of Mariano Rajoy. Despite maintaining these two plans, the head of Industry has stressed that to develop the project new budgets are needed, since the 2018 "have no strength." Other actions with which the Government wants to promote sustainable mobility are new plans for scrapping vehicles and stimulating the demand of so-called "zero" and low emission. These measures will have an estimated budget of 127 million euros for 2019 and 2020 and up to a total of 1,127 million for the period 2019-2025.

The plan foresees the implementation of measures to support the rejuvenation of the staff with the recovery of partial retirement and the relief contract, as well as measures aimed at increasing the female presence in all jobs and professional profiles. It also includes the strengthening of Dual Professional Training and the link between the company and the university. These measures would be developed through public-private collaboration to launch training programs in work related to digitalization and green transition. In addition, the strategic plan includes the creation of a sustainable mobility work table that brings together the entire sector to coordinate medium and long-term measures. The working group will be made up of public and private agents, the most representative employers of the sector and the unions UGT and CC OO.

The Ministry of Industry also intends to "harmonize" the registration and circulation taxes to improve the competitiveness of the automotive sector. These two taxes "make us less competitive with other countries", as indicated by Maroto, who assessed that "harmonization will allow us to tax the same taxable event only once compared to the current two. I think it's a benefit for the consumer. " Within the plan for the automotive sector is the objective of defining «a new green taxation, more oriented towards the use» of the vehicle. Aspects such as if this measure would suppose the elimination of the registration tax, which is paid once the vehicle is acquired, will have to be discussed in the working group with the companies.


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