For cars and motorcycles over 16 years old, the IUC will be increased to 25 euros.

In addition to including in the draft state budget 2024 (OE 2024) an incentive for the recycling of end-of-life vehicles (registered before 2007) with an estimated budgetary effect of 129 million euros from the scrapping of 45 thousand vehicles next year, the government also wants to introduce “environmental reform of the ICC – Unified Turnover Tax.”

Three million cars and 500,000 motorcycles are covered, with a budgetary impact of 84 million euros.

The goal, according to Tuesday’s state budget proposal, is to “recover taxpayers for the environmental and traffic costs they cause” by paying the corresponding IUC. Thus, owners of new passenger cars registered after 2007 (IUC category B) will pay a tax based on cylinder volume and CO2 emissions (environmental component) from 2024.

However, light passenger cars (category A) and motorcycles (category E) registered before 2007 will be taxed by the IUC solely on the basis of engine size, without taking into account the environmental component.

According to the government, this environmental IUC reform will have a cap of 25 euros per vehicle in 2024, with this amount gradually increasing until the IUC rate represents all taxes associated with the CO2 emissions of these vehicles.

“This measure is combined with the creation of an incentive for the recycling of old vehicles, the aim of which is to promote fleet renewal and decarbonisation of passenger transport,” the government emphasizes, adding: “With the proposed reform, the taxation of categories A and E vehicles now meet the environmental requirements that the government intends protect by introducing an environmental component (CO2 emissions) also for these vehicles.”