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The Registration Tax Increase In Spain Is Suspended Until 2022

The PSOE rectifies its position and knocks down the increase in costs in the Senate

The PSOE rectifies its position and knocks down the increase in costs in the Senate. With the new mediation system, emission levels are also raised. In this way, there could be cars that pay less until the end of the year.

The Senate this week suspended the registration tax hike. A measure that has come after an amendment of the PDeCAT and that, with the change of opinion of the PSOE , postpones this increase in one of the fixed costs of cars until, at least, 2022. In addition, a new system of sections by emission that may benefit some vehicles.

When purchasing a motor vehicle, new or used, one of the payments that must be made is the so-called registration tax. A cost that is taxed according to the level of emissions of the car or motorcycle, stipulated by the Air Quality Law , and which has had large discrepancies in recent months.

Given the entry into force of the new WLTP emissions measurement system, which increased the emissions of each vehicle by 20% , there were many who passed the section increasing its cost or, even, having to pay despite being exempt with the previous one system.

Therefore, and given the intention of the PSOE to carry out the change that would directly raise the tax, the PDeCAT presented an amendment in the Senate. Measure that has finally had the go-ahead by having the favorable votes of the PSOE itself, rectification of its position through, and United We Can. For their part, PP, Ciudadanos, Vox or ERC had voted to introduce this new system.

In this way, and in order to give some peace of mind to the automotive sector so hit by the lower sales as a result of the covid-19, the entry into force of the WLTP measurement is avoided of higher rates through a change in the sections. A modification that can make some cars or motorcycles change step, downward, with the respective lower payment that it involves:

– They do not pay tax . Vehicles that emit a maximum of 144 grams per kilometer (previously 120).

– They pay 4.75% . Vehicles that emit between 144 and 192 grams (before 120 to 160).

– They pay 9.75% . Vehicles that emit between 192 and 230 grams (previously between 160 and 200).

– They pay 14.75% . Vehicles that emit more than 240 grams of CO2 per kilometer (previously, above 200).

In any case, the new norm has yet to return to Congress for this chamber to approve it, although a mere formality is expected. Thus, it will not be until, at least, 2022 when the rise comes into force, although different institutions are already asking for a moratorium with 2023 included.

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