The Valencian Government will tax ‘green’ emissions from cars and industry

One of the great bills that the coalition government made up of Socialists, Compromís and Podemos in the Valencian Community has pending approval in the remaining year of the legislature will mean a new twist to the fiscal pressure.

The future Law on Climate Change and Ecological Transition not only includes the objectives to reduce polluting emissions and implement alternative energies. It will also mean the entry into force of three new regional taxes, which will directly affect the majority of Valencians and a good number of companies.

The project, which has already received the approval of the Consell chaired by Ximo Puig and now has to be processed in the regional parliament, justifies the new taxes to encourage decarbonization and modify the habits of citizens and companies. De facto it will be a tool to increase the collection of the coffers of the Generalitat Valenciana from 2025, when it is expected that they begin to be applied.

The one that will have the greatest impact on Valencians in general will be the one that will be applied to carbon dioxide emissions from mechanical traction vehicles. A tribute similar to the one already approved by Catalonia, where it was estimated a collection of almost 66 million euros for a car fleet of 2.2 million vehicles.

In the Valencian case, the new tax will be levied on cars, motorcycles and vans that do not exceed 3.5 tons of freight transport capacity. The fee that will be charged will range between 70 cents and 1.40 euros for each gram of CO2 emitted per kilometer in cars and motorcycles, while in vans it will be 70 cents.

Practical examples

Taking as an example the best-selling car in Spain in 2021, the Seat Arona, its basic gasoline model will pay 80.5 euros. For the second best-selling model, the Hyundai Tucson, also gasoline, is about 157 euros. Cars and motorcycles that emit less than 95 grams of CO2 per kilometer will be exempt, as will vans of less than 140 grams.

The bill prepared by the Ministry directed by Mireia Mollà, of Compromís, will also apply another tax on the emission of greenhouse gases from production facilities, specifically carbon dioxide and methane. In this case, the future rule establishes that companies will have to pay 200 euros for each kiloton of CO2 equivalent emitted, although the investments made precisely to reduce the pollution of these gases can be deducted. Interestingly, and despite the deterrent effect of the new standard, both vehicles and facilities belonging to public administrations are completely exempt from both taxes.

To shopping centers

If the future norm is approved as it has been formulated by the partners of the Government of the Botanic that have a parliamentary majority, another tax will be imposed on large commercial establishments with more than 2,500 square meters of commercial area that have parking. A tax that the left parties justify by the road traffic and the transport needs generated around these large surfaces.

In this case, to fix its amount, a ratio is used depending on the activity to which it is dedicated, the area used and whether it is inside or outside a consolidated urban area.

Source: The Economist