The State reduced by 16.3% the collection for the registration tax in January

The registration tax (rate transferred to the autonomous communities) generated a collection of 34.3 million euros during the month of January, which represents a decrease of 16.3% compared to the 41 million euros entered in the same month of the previous year.

According to data from the Tax Agency, the average fee to be paid for each vehicle registered in Spain in January stood at 792 euros, which represents an increase of 94.1% compared to the 408 euros of the same month of 2020, due to the increase in registration tax that has been carried out in January, as a result of the end of the moratorium for the entry into force of the new WLTP emission measurement protocol.

For its part, the average price (including registration tax) of vehicles sold in January was 20,026 euros, 5.3% more year-on-year.

In addition, the models registered during the past month had average CO2 emissions of 128 grams per kilometer, 13 grams more than a year earlier, given the new scale of measurement of the same.

Finally, the value of new vehicles marketed in the Spanish market in January was 833.3 million euros, 55.4% less year-on-year.

Increase in registration tax

Given the tax increase in January, all vehicles have experienced an increase in the average fees to be paid by the State.

Thus, vehicles with a tax base of less than 10,000 euros have increased their average quota by 62.5%, going from 139 euros that were collected in January 2020 to 226 euros last month.

Vehicles with a tax base of between 10,000 and 15,000 euros have increased their average share by 330.3% year-on-year (from 79 euros to 340). For its part, models between 15,000 and 20,000 euros of taxable base, which are the most marketed in the market with a market share of 29.2%, have gone from 135 euros in 2020 to 527 euros last month, 290.3% more.

Models with a tax base of more than 60,000 euros have increased the average fee to be paid for this tax by 87.9%, from 4,311 euros a year ago to 8,100 in January 2021.

The Spanish market was the most aggravated of the main countries of the European Union, since it reduced its sales by 51.5% year-on-year, to 41,966 deliveries, according to data from the employers of manufacturers (Anfac), dealers (Faconauto) and distributors (Ganvam).

Due to this increase, the automotive sector estimates that registrations will be reduced by 110,000 units, which will mean closing the year below one million units.

As the president of the employers’ association of the concessionaires, Gerardo Pérez, advanced in an interview with this newspaper, “if the registration tax had not been touched, the collection would have been higher. It could have been between 800 and 900 million euros more. For one simple reason, it is true that sales would have been maintained to a much greater extent than what is happening today.”

On January 18, the Minister of Industry, Reyes Maroto, insisted in an Agora of elEconomista on the importance of working on a new taxation of the automotive sector, so that this is not an element that generates “lack of competitiveness” if not, quite the opposite.

The Government has “the commitment” to review the taxation of the sector. However, Maroto stressed the need to address the future of the automotive industry in Spain from a “global” perspective and not only with a “concrete measure”. For this reason, he highlighted the importance of the Automotive Board, which assured that it is a body of “governance” in public-private collaboration.

Source: The Economist