Wednesday, October 5

Registration tax goes up again on January 1

  • On December 31, the registration tax freeze ends, making 40% more expensive on January 1 on new cars.

  • The dealer association, Faconauto, warns that the increase in the tax could lead to the loss of 100,000 sales throughout the year.

The registration tax freeze comes to an end on December 31st and the tax will rise to become more expensive, as of January 1, the 40% of new cars. This tax is directly related to the emissions of each vehicle and establishes payment tranches according to the amount of CO2 that emits through the exhaust pipe. Thus, the electrical and the plug-in hybrids They are exempt from the payment, as well as the less polluting combustion vehicles.

The registration tax actually went up by January of 2021, when the emission homologation regulations came into force WLTP, more precise than permissive NEDC, which it replaced. Under the new regulations, many new vehicles jumped from the tax bracket, going to pay as soon as possible they did not have to do so or to pay more than they paid before. With figures, until June, the month in which the Senate decided to freeze the increase until December 31, the collection of the tax rose by 113% compared to the same period of the previous year. Anyone who bought a car before the tribute freeze, paid between 600 and 1,000 euros more on average.

This had a negative effect on the Spanish car market, which lost until the end of June, according to data from the Spanish Association of Automobile and Truck Manufacturers (Anfac), a third of sales compared to the first half of 2019. At the time, the employers’ association highlighted the collapse of the private channel, which fell by a 35% compared to the same month of 2019, with the chip crisis beginning to affect stock in dealerships. For all this, the sector requested throughout the first semester that the tax be frozen, a fact that materialized the 1st of July after the measure is approved in Congress and be ratified by the Senate inside the new Law on measures to prevent and fight tax fraud.

New tax brackets

With the registration tax freeze, the tax brackets increased by 20% to adapt to regulations WLTP and return to 2020 levels. Thus, all cars that emitted less than 144 grams of CO2 per kilometer did not pay tax, while those who reported emissions between 144 and 192 grams paid 4.75%, those who emitted between 192 and 240 grams paid 9.75% and those who exceeded 240 grams they paid 14.75%. As of January 1, the sections will be reduced again, freeing up payment for vehicles under 120 grams, taxing 4.75% among the 120 and 160 grams, 9.75% among 160 and 200 grams and 14.75% when exceeding 200 grams.

Last November, the average emissions of new cars sold in Spain, according Anfac, were 120.5 grams of CO2 per kilometer, which is above the minimum registration tax. From the employers of the automotive sector already warn that the rise will have, again, very negative effects for the market. In addition, they recall that this rise occurs in a fatal context due to the semiconductor supply crisis, which has lengthened waiting times and eliminated the stock of almost all brands. According to the dealers’ association, Faconauto, the rise in tribute could mean the loss of up to 100,000 units throughout the year.

Cars jumping stretch

Related news

From one day to the next, many cars will become more expensive on average 5%. The best-selling car of 2021 at the end of November, Seat Ateca, is one of the clearest examples of what buyers will find in 2022. In its access motorization, the gasoline engine TSI de 110 CV, declares emissions of 137 grams of CO2, now being exempt from the tax but becoming more expensive by 4.75% as of January 1. All its engines, including the 115 hp diesel, which emits 127 grams, jump the section.

From the list of the 10 best-selling cars in Spain in 2021 until November, only the Fiat 500 and the Toyota Corolla they will get rid of jumping the stretch. Both the Seat Arona, as the Hyundai Tucson, the Dacia Sandero, the Peugeot 2008, the Seat Leon, the Peugeot 3008, the Citroen C3 and the Volkswagen T-Roc They have engines that will become more expensive on January 1.

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