October 21, 2020

The collection for the registration tax rebounds despite falling car sales | Economy


The negative correlation between the number of cars sold and the amount collected by the tax is not the effect of a statistical prestidigitation. The main reason for the lag is in the pull that gasoline is having in front of diesel. When emitting more CO[2afundamentalvariabletocalculatetheregistrationtaxtherearemorecarsrequiredtopaythelienandinlargerquantitiesIndustrysourcespointtoanothercomplementaryreason:theincreaseinvehicleswithmoreweightwhichconsumemoreandthereforehaveahigherlevelofemissions[2variablefundamentalparacalcularelimpuestodematriculaciónhaymásautomóvilesobligadosaabonarelgravamenyenmayorescantidadesFuentesdelaindustriaseñalanotrarazóncomplementaria:elaumentodevehículosconmáspesoqueconsumenmásyporendetienenunnivelmáselevadodeemisiones

Already in 2018 gasoline car sales marked a milestone, to overcome for the first time in more than two decades those of diesel. The outbreak of dieselgate in 2015, which uncovered the trick system used by Volkswagen to reduce pollutant emissions of its models, and the legal uncertainty that has been installed around the future of diesel vehicles – from the announcements on the limitation of their circulation to the plans of tax increases – contributed in recent years to demonize this fuel and boost gasoline cars.


Vehicle registration

Tax exempt vehicles

Source: Ministry of Finance.

THE COUNTRY

Vehicle registration

Tax exempt vehicles

Source: Ministry of Finance.

THE COUNTRY

Vehicle registration

Tax revenues from enrollments

Tax exempt vehicles

Source: Ministry of Finance.

THE COUNTRY

The collection for the registration tax rebounds despite falling car sales



The data published on Tuesday by the Tax Agency confirm this trend: of the 1,301,986 cars sold – compared to 1,362,387 the previous year – 64.4% was gasoline and 35.6% diesel. In 2018, the gap was smaller: of the total number of vehicles registered, 58.3% were gasoline and 41.7% diesel.

Also the average emission per vehicle reflects this change in the dashboard. In 2019, it amounted to 121 grams of CO2 per kilometer, compared to 119 in 2018. Likewise, the number of cars exempt from paying the fee was reduced, a privilege for cars that emit less than 120 grams of CO2 per kilometer. In 2018, 68.4% of the vehicles got rid of the tax; Last year this percentage was 59%.

And this despite the fact that the industry has had to internalize to forced marches the maximum that the polluter pays and plunge into a profound transformation in the face of the climate challenge and the growing regulatory pressure. For the future, the objectives are ambitious: Brussels requires manufacturers to reduce the maximum emission limit of their vehicles to 80 grams of CO2 per kilometer in 2025 and 60 in 2030.

Anfac, the Spanish employer of car manufacturers, has long been asking that the use of vehicles be serious instead of their purchase, which is already subject to VAT. In other words, it asks that the registration tax be abolished and that environmental criteria be introduced in the traffic tax instead – which is paid every year based on the car’s fiscal horses.

In September 2018, the new EU emission regulations also entered into force, which foresees a stricter method for measuring the pollution of newly manufactured vehicles. This system, known as WLTP, implies that in practice the new cars pollute about 20% more with respect to the results reflected by the previous standard.

However, this regulation is having a gradual entry. The Government has established a transitional period until January 1, 2021, during which only part of the rise in emissions determined by the WLTP will be considered. The industry estimates that in this phase about 5% of the vehicles that were previously exempt would pay the tax, a percentage that would rise to 10% or 20% once the standard starts running at full throttle.

The number of vehicles that emit more grows

Current regulations establish four CO2 emissions forks to which different tax rates are assigned. According to the Treasury, in 2019 the registrations of the most polluting cars grew, which generated more than 160 grams of carbon dioxide per kilometer. They represented 6.1% of the total and grew by 15% compared to 2018. On the contrary, the enrollments of those with less than 120 grams of CO2 per kilometer they fell 17.4%.

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