The planned increase in the Unified Turnover Tax for 2024 has caused demonstrations and horns throughout the country and, judging by the progress, Newspaper, More and more old cars are being sold, and there are even retail outlets that are at risk of closing due to higher taxes.
The measure, included in the 2024 state budget, increases the single turnover tax by a maximum of 25 euros per year for cars and motorcycles registered before July 2007, and the increase will be progressive. When paying the tax, the environmental component is also taken into account, that is, the amount of carbon dioxide (CO2) emitted by vehicles.
Higher taxes are having a negative impact on car sales, and several car dealerships are at risk of closing due to an inability to pay. According to JNPlatform electronics Until 2007, Standvirtual recorded a 9% increase in the number of advertisements for the sale of new cars, and the CustoJusto.pt website recorded an increase of 13%.
The Portuguese Automotive Trade Association (APCA) confirms that more customers are coming to the stands trying to sell their cars to “reduce the impact of what might happen” with progressive tax increases. Nuno Silva, President of APCA, does not agree with the new measure OE2024 and proposes additional incentives. “If people have old cars, it is because they cannot buy more modern cars. There must be an incentive for this, it is not enough just to increase the tax,” explains the president. JN.
Nuno Silva also explains that stands dedicated to the sale of old cars will experience many difficulties and will eventually close. IUC devalues older cars, and “when people start selling their cars, it’s because they don’t want to pay the more expensive IUC. But others will also not buy these cars, which will lead to a further drop in the value of cars,” he adds in a statement to the newspaper of President Nuno Silva.
The Portuguese Automotive Trade Association is advocating a “temporary suspension” of the tax for at least one year to ease the bills of businesses.
The petition against increasing the Unified Road Tax has already collected more than 400 thousand signatures.