Will less taxes be paid to buy cars instead of loan?

Will less taxes be paid to buy cars instead of loan?

Reduce taxes when buying a car

Reduce taxes when buying a car

The motor sector has asked the government to reduce taxes when buying a car. And these requests seem to have been heard, because at the moment the Government is preparing a total reform of the taxes associated with the automobile. This reform would take effect from 2018.

Although the government’s proposals for new reforms in motor taxation have not yet been made public, the automotive sector is not wasting time taking advantage and making its requests public. Manufacturers’ requests are mainly based on the following concepts: that the purchase of the vehicle itself does not imply a lien for the buyer, and that each user pays based on the use they make of the vehicle.

Both manufacturers and sellers, importers and dealers operating in our country, agree on the importance of these points when approaching reforms.

According to these groups, the registration tax is an impediment for Spaniards to renew their vehicles. This is probably one of the main reasons why the Spanish car park far exceeds twelve years old. If this tax were to be completely eliminated (currently 74 percent of the vehicles sold in Spain are exempt from paying it), sales of new cars would increase considerably.

How does the automotive sector plan to tax the use of cars?

How does the automotive sector plan to tax the use of cars?

According to manufacturers and employers, penalizing the purchase is not an effective method to include taxes in the motor sector. They consider that the best way is to tax vehicles based on their use. For this sector the fairest way to tax vehicle use is to apply dynamic tolls on roads and in cities. In this way, each vehicle would pay according to the use it makes of the infrastructure and the need for maintenance it generates.

Business associations also consider the reform of the road tax to be necessary so that less use is made of old cars, much more polluting than new generation cars. It should not be forgotten that today the road tax is levied on vehicles according to the displacement they have and the power they have. However, this tax does not take into account environmental criteria associated with the polluting level of vehicles. Much higher in those that are more than ten years old.


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