The government is telling that global revenues from taxes on the automotive sector surrender to state coffers 3675 million between the tax on oil and energy products (ISP), vehicle tax (ISV) and vehicle excise duty (IUC). The expectation is that the collection grow 19% compared to 2015, meaning that engagement with these three tax increase of EUR 578 million. In fact, the amount to be paid by drivers to the Treasury will be even higher, since the fuel also pay VAT, but there is no such data broken down.
Part of this increase results from the tax increase introduced in the budget proposal State (OE) for this year and between ISPs and ISVs, worth EUR 430 million (360 million and 70 million respectively). This increase represents 74% of the total additional docking estimated by the executive in 2016 with the tax on the sector.
The other part of the revenue increase will come through the stimulation of consumption (with, for example, increased sales of cars and fuel supply) and price developments. In fact, in the report accompanying the OE, executive points out that this increase is the result of “strengthening the growth of economic activity and an increase in taxation.”
The primacy of the ISP
Only the worsening ISP will lead to an increase of six cents in the price of petrol and diesel, plus one and two cents, respectively, compared to what the Government had announced when he presented the budget outline (leaving now to discriminate positively diesel). For motorists, the price increase will always be higher, because of the VAT, which is levied on the increase.
The measure was launched by the Government to compensate the loss of revenue resulting from the oil price drop . The final result expected by Mário Centeno team is that, overall, the ISP revenues increase 20.8%, which represents a further € 465 million to the state coffers over the amount collected in 2015. The proceeds last year it was 2238 million, and if the government forecasts materialize, the collection exceeds EUR 2700 million (see infographic). The ISP is the fourth tax more tax revenue guarantees for the public coffers, after VAT, IRS and IRC.
Among the three indirect taxes passed on to the automobile sector and who are the target of new exacerbations with this budget, the ISP is one that contributes most to the revenue increase this year: 80% of 578 million euros more expected with the ISV, IUC and ISP come the latter tax.
the ISV paid the car’s registration, has suffered an increase of 3% last year, with the reform of green taxes and returns now to be increased. The forecast is that the government revenues grow at a rate of 15.4%, an increase of EUR 88 million (EUR 573 million last year to 661 million expected this year). The collection of this tax has increased 23.1% last year, benefiting from the dynamism of the automotive sector.
In 2012, the year the automobile market experienced the second consecutive year of contraction, with sales sink 38% to the lowest level in 27 years, the ISV has been increased for passenger cars. Now the executive António Costa decided worsen by 3% rate on the cylinder component and between 10% and 20% of the components on emissions.
Who buy a new vehicle, and refer to credit, still faces up to a further increase on the stamp duty on credit agreements. A simulation made by PUBLIC, purchasing a car that costs 25,000 euros, with a higher credit to five years will be more expensive at 125 euros.
In the case of IUC, paid each year by owners vehicles, there will be an increase of 0.5% the same for all vehicles, regardless of engine capacity, emissions and fuel type, according to a simulation of the National Association of Enterprise Trade and automotive Repair (ANECRA).
With this tax, the expected docking is 311 million euros, 25 million more than last year, a variation of 8.7%. The IUC revenue has also been growing, although the increase in the last year, 3.2%, was much lower than the previous government had (an increase of 13.5%).
the increase in revenues in this tax has been driven by pressure from the tax machine to increase the collection. In 2013, the Tax Authority and Customs sent millions of notifications to taxpayers pay the IUC owed taxes for 2009, 2010, 2011 and 2012.
If, in 2010, the ISP value 71, 5% of the total of the three charges with the ISV to hold a 24% weight and IUC 4.5%, this year the reality changes a bit: the ISP will represent 73.5%, 18% and ISV the IUC 8.5%.
last year, when entered into force on reform of green taxes, most of the “bill” is already reflected in the automotive sector.
2015 and the increase of the ISV, the reform of the green taxation resulted in a carbon tax, introduced on the form of an additional ISP. Between that measure and increase the road tax, the increase was three cents per liter.
Looking at the previous years, PwC consultant analysis also shows that this has been a sector where the tax machine has looked very carefully. In 2014, for example, an additional fee in IUC applied to class A and B cars was created; and in 2013 there was an increase in road service contribution of 3.6%.
Already in 2012, note to PwC, “the ISV had an increase of more than 5% of the rates applicable to the component displacement, so as increased rates applicable to the environmental component of approximately 13%, “and” even there was a significant increase in the maximum rate “for special consumption taxes (IEC),” namely, 17.9% in oil. “
Before that, in 2011, the ISV (in the previous year had passed to be more dependent on CO2 emissions) saw the introduction of an annual rate “environmental upgrade,” which resulted “in a general increase in 5% on the environmental component of the calculation. “