The Government will promote the electric car by raising the registration tax on those who pollute

The Executive of Pedro Sánchez intends to promote electric vehicles with a tax reform that would mean raising the circulation tax on cars and vans that emit carbon dioxide (CO2).

This is reflected in the updated draft of the Integrated National Energy and Climate Plan (Pniec) 2021-2030, prepared by the Ministry for the Ecological Transition and the Demographic Challenge and which is Spain’s roadmap to meet climate objectives in coherence with the Paris Agreement.

The updated draft of the Pniec 2021-2030, includes a chapter dedicated to the promotion of the electric vehicle in indicates that “the Ministry of Finance will analyze the convenience and viability of a tax reform in the automotive sector” in which it could consider the reform of the Special Tax on Certain Means of Transport (Iedmt) or registration tax to “update the CO2 emission thresholds from which the tax is paid”, as well as others to the purchase or use of the vehicle.

“The reform would allow to advance the price parity between thermal vehicles and electric vehicles, which would contribute to accelerate the penetration of the latter above the requirements of the new CO2 emissions Regulation for cars and light vans, guiding the citizen towards the purchase of zero-emission vehicles,” says the Plan.

The objective of this measure is to reduce the energy consumption of the car fleet, since the proportion of electric vehicles is still very low (54,079 units in 2018).

Ecological Transition stresses that the massive electrification of the vehicle fleet will only be achieved when the price of electric and combustion vehicles (diesel and gasoline, for example) is equalized. According to manufacturers, this parity can be reached in 2025 due to the decrease in the price of batteries.

The department headed by Ribera, who is fourth vice president of the Government, predicts that in 2030 there will be about five million electric vehicles (cars, vans, buses and motorcycles), which will mean an accumulated saving of final energy of 3,524.2 tons of oil equivalent in 2030, of the 13,888 that represent the total of the transport sector.

In addition, the Government intends to promote the renewal of the car fleet with a reform of the IVTM (Tax on Mechanical Traction Vehicles), known as the circulation tax, which is collected by the municipalities.

In the long term, Ecological Transition intends to adopt measures so that “new passenger cars and light commercial vehicles, excluding those registered as historic vehicles, not intended for non-commercial uses, gradually reduce their emissions, so that no later than 2040 they are vehicles with emissions of 0gCO2 / km”, for which it will work with the automotive sector in the next two decades.

Source: Expansión