The Automóvel Club de Portugal (ACP) has proposed three measures to the Government that it considers urgent, within the scope of the State Budget for 2025, including direct support of up to 6,000 euros for scrapping end-of-life vehicles.
In a statement, the ACP said it had proposed three “urgent measures to renew the vehicle fleet, help motorists and the economy”, highlighting that “there are more than six million light passenger vehicles circulating in Portugal with an average age of over 13 years, one of the highest in the European Union” which constitutes “a threat to European sustainability goals and a huge risk factor for road safety”.
Therefore, the association advocates that the incentive for scrapping end-of-life vehicles be resumed urgently, since the measure was included in the State Budget for this year, but has not been implemented. The ACP believes that the measure should be implemented through direct support for scrapping an end-of-life vehicle, covering all light vehicles over 15 years old.
Specifically, an incentive of 4,000 euros is proposed for those who scrap their vehicle and buy a new or used passenger vehicle up to four years old, and 6,000 euros for new or used light commercial vehicles up to four years old. If the vehicle is only scrapped at a certified centre, without purchasing new or used vehicles up to four years old, the ACP proposes a direct incentive of 1,000 euros.
In addition, the ACP also proposes updating the tax brackets for company vehicles, whose autonomous taxation has been divided into three brackets since 2011: for vehicles up to 25,000 euros, between 25,000 and 35,000 euros and over 35,000.
“Only in 2018 was the minimum limit adjusted to 27,500 euros, although the intermediate rate had already been adjusted (from 20% to 27.5%). In other words, there has been an increase in taxation over the last 13 years without any review of the threshold for the tax brackets, despite the annual inflation reflected in taxes on motorists”, pointed out the ACP.
The association considers that, by keeping the minimum threshold for the maximum tax bracket unchanged since 2011 (from 35,000 euros), the tax becomes “blind”, since “it pays for both a luxury car and a utility vehicle”, and, it stresses, “not even the reduction in the autonomous tax rate that occurred in the 2024 Budget compensates for this tax injustice”.
Finally, the ACP advocates the integration of the Environmental Fund into the State Budget with clear rules and a timetable defined at the beginning of the year, covering a greater number of beneficiaries. “Given the market supply and demand, environmental sustainability goals and the energy transition phase itself, it is proposed that this fund now cover the purchase of light hybrid passenger and goods vehicles (hybrids and 100% electric)”.
Everyone knows that to be green, you have to destroy a perfectly serviceable car, ship the junk metal to China, mine rare earth metals from Africa using child labour, ship them around the world, build a new car, ship that to your country -- congratulations, you just saved the planet :)
By B P from Açores on 24 Sep 2024, 09:25
It would be good to know the centers that are doing this.
By Eleanor from Beiras on 24 Sep 2024, 09:32
Maybe they could start by providing healthcare for the 1.7 million residents currently excluded for lack of public resources instead of wasting up to €36 billion on car scrapping subsidies.
By Thomas from Porto on 24 Sep 2024, 09:59
The ACP can take a run and jump! Ludicrous to expect the state to subsidise the purchase of a newer vehicle, for potentially millions of car owners. No wonder people are crushed by excessive taxes in Portugal, with VAT at 23% and income tax rates going as high as 48%, and payable on what are still relatively modest incomes.
It's a person's own responsibility to pay their way. The taxpayer shouldn't be burdened with the cost of this measure.
Plus, the ACP is wrong about safety, because the main cause of road accidents isn't the age of a vehicle, but how it's being driven.
By Billy Bissett from Porto on 24 Sep 2024, 12:25
Só, we all get electric cars - how does Portugal generate all that electricity? Already we pay a lot for electricity to our homes.
Personally, I don’t agree with electric cars.
By L from Lisbon on 24 Sep 2024, 14:38
Under normal circumstances this absurd idea of subsidising relatively wealthy car owners to scrap a car many would be grateful for , to be replaced by cheap Chinese subsidised fire hazards would be dismissed out of hand , but with the halfwit liberal elite it's got every chance of going ahead .
By John from Alentejo on 25 Sep 2024, 10:37
It would already help if the periodic mandatory car inspections were a bit tougher on exhaust air quality. I often see huge diesel fumes and cannot understand how these cars can have passed the test.
By Henk from Lisbon on 25 Sep 2024, 12:29
A delusional idea thought of by someone with money. The reason why there are so many old cars is that cars are so expensive compared to wages/income in the first place. That's why.
Yes get smoky high polluting vehicles off the road. Punish heavily those involved in giving 'bent ' MOTs (IPOs).
Design and Install Hybrid/electric units to run in existing cars and extend the life of existing cars thus saving on environmental wastage.
By David clark from Algarve on 26 Sep 2024, 23:10