tax applied to another Member State of imported vehicles is illegal – publico

 
         

                 

                         
                     

                 

 
 

The Court of Justice of the European Union (EU) decided on Thursday that the tax applied in Portugal on used cars imported from another Member State violates the rules of free movement of goods. At issue is, in particular, Article 11 of the Vehicle Tax Code (MIC), under which considers the European court, Portugal discriminates against used vehicles imported from another EU country, particularly with regard to the tables devaluation. While the ACP applauds the decision, ACAP, a body that brings together companies in the sector say that the measure could cause “ degradation of the vehicle fleet by encouraging the import of cars”

On the part of court, it held that “Portugal apply to second-hand cars imported from other Member States a system of taxation in which, on the one hand, the tax liability of a vehicle used for less than one year is equal to the tax on a vehicle new similar put into circulation in Portugal and, secondly, the depreciation of the vehicles used for more than five years is limited to 52% for the purposes of calculating the amount of this tax, regardless of the actual general condition of these vehicles. “

the judgment points out that the tax payable in Portugal by hand vehicles imported from other Member States “is calculated without taking into account the actual depreciation of these vehicles, so that does not guarantee that such vehicles are subject to a tax amount equal to the tax levied on similar used vehicles available in the domestic market. ” Following this judgment, the European Commission should impose a deadline for Portugal to change the legislation in question.

The Finance Ministry says it is reviewing the judgment to “take a stand”, considering that the judgment “only determines adjustments to tax a small part of imported used cars.”

for the Government, is only concerned in the importation of used cars registered in another European country, the implementation of the legally scheduled depreciation table . The scale currently includes only five levels, explained to Lusa, which according to the judgment should be revised, to divide at least the first and last step in most sub-groups.

The Automobile Club of Portugal (ACP) has reacted to the decision of the European court, stating that it will take “the reduction of taxes on car import used from member states of the European Union” and that comes against ACP appeals “to reduce taxation on the sector car, since this is the most buffeted by taxation in Portugal. “

critical position has, on the contrary, the automobile Association of Portugal (ACAP), representative of manufacturers, noting that this issue arises first – as has happened in relation to other countries – the fact that there is in Europe a ‘tax harmonization in the automotive sector. ” Helder Pedro, president of ACAP, believes that the decision will contribute in practice for a “degradation of the vehicle fleet by encouraging the import of cars,” including vehicles with more than five years. Helder Pedro argues that the government should assert its position with the European Commission and “reach an agreement” in relation to this matter.