The increase planned for 2024 in the single circulation tax (IUC) is making headlines due to the widespread opposition it is generating, despite the Government showing no signs of withdrawing the proposed increase included in the State Budget for 2024. The measure, which may still undergo changes, will affect over three million cars and half a million motorcycles.
The increase in IUC has been happening every year, but in 2024, the situation is quite different from previous years, considering that some vehicles will experience a higher increase in tax than others.
In this sense, DECO PROTeste has already clarified the main doubts of motorists and reminded them that the increase in IUC will be more expensive for “passenger cars and mixed-use vehicles with a gross weight of up to 2500 kilograms, registered between 1981 and June 30, 2007, as well as motorcycles, mopeds, tricycles, and quadricycles registered after 1992”. As for the other vehicles, they will see the single circulation tax increase by about 3% compared to what was paid in 2023.
The justification for the higher increase in IUC for some vehicles lies in the controversial decision of the Government to change the rules regarding cars registered between 1981 and July 2007, which will have a larger increase in IUC because “the calculation of the tax to be paid will no longer be based solely on engine displacement and will include a component of CO2 emissions”, clarifies Deco PROTeste.
As an example, Consumer Defense points to the case of a gasoline car with 1250 cubic centimeters of engine displacement, with the inclusion of the CO2 emissions component, which “will now pay a maximum of €96.92”.
However, to prevent some consumers from paying twice the amount of tax from one year to the next, the Government has created a “transitional provision that prevents the tax from increasing by more than €25 per year compared to the previous year’s payment. This means that the IUC will be gradually increased, at a maximum rate of €25 per year, until it reaches the total amount specified for the bracket, according to the CO2 emitted by the vehicle”.
But don’t think you can escape this increase in IUC if your car does not have a CO2 emissions record in the vehicle registration document. “To circumvent this situation, the Government has created a specific table, divided into brackets, which determines the tax to be paid based on the IUC table for cars registered between 1981 and June 30, 2007”, clarifies DECO PROTeste.
Engine displacement bracket in cubic centimeters – CO2 bracket
Up to 1500 – 1st Bracket
Over 1500 up to 3000 – 2nd Bracket
More than 3000 up to 4000 – 3rd Tier
More than 4000 – 4th Tier
In other words, according to DECO PROTeste calculations, the majority of older vehicles will now have to pay more, with the government justifying the measure due to the higher pollution levels of these vehicles, emphasizing that the objective is to encourage the purchase of more environmentally friendly cars.
