Updated on Friday, April 30, 2021 – 08:51
Europe collects every year in car taxes almost two and a half times more than the budget of the whole Union.
Spain is the fourth country of the large European markets in the ranking of tax collection, according to the Annual report on automobile taxation recently published by the Association of European Constructors (ACEA). However, if the tax data for each vehicle is taken, our country is located in thirteenth place in the European Union, behind Greece.
The total amount that is collected annually in auto taxes multiply by 2.5 the annual budget of the European Union. ACEA’s report counts € 398.4 billion of tax revenue for governments in major European markets. The amount has increased by 3% compared to the report published in 2020.
ACEA draws conclusions from its report and above all urges Administrations to use the huge annual tax balance on investment for the transformation of mobility. “Taxes on vehicles, roads and fuels generate huge amounts of government revenue each year in the EU, which should help finance the charging and refueling infrastructure that is now urgently needed to address the growing market acceptance of alternative propulsion vehicles“, declares the CEO of ACEA, Eric-Mark Huitema.
Return on electrical infrastructure
The director of the association of European car manufacturers is concerned that the lack of infrastructure slows the new impulse in the sales of electric cars in Europe, which this year already occupies 14% of all brand new vehicles delivered.
The study takes into account all the taxes that concern the automobile, private, public or commercial -motorcycles included-: VAT, Registration, Circulation, emissions, road use, fuel, exemptions … In the Spanish case, with data provided by the employers’ association of national manufacturers, Anfac, and in the specific analysis of ITV expenses through the Facua consumer association.
Germany, the largest volume
Germany has the largest car fleet in Europe and collects through taxes 99,900 million euros per year. About half of it comes with taxes on fuels and lubricants, 41,900 million, while VAT taxes on purchase and after-sales services total 34,600 million euros.
Spain enters by VAT on the sale, registration and repairs 5,000 million euros and more than two-thirds of the total, 21,500 million euros, in the levies on fossil fuels and lubricants. As in all EU countries except Belgium and Slovenia, in Spain an gasoline (504 euros per 1,000 liters) is taxed more than diesel (379 euros / 1,000 l). The diesel tax in the rest of the Union ranges from 317 / 1,000 liters in Hungary to 617 in Italy. In the case of gasoline, the tax rate ranges from 345 / 1,000 liters in Hungary) to 813 / 1,000 liters in the Netherlands.
The Spanish Government plans to continue with the tax escalation to these energies derived from oil, rescuing its diesel tax project, but it is not going to stay there, as it is studying how to limit payment sections and conventional highways so far free. The system is being used in the main European countries.
The battle of the automotive sector on the tax side has focused on the Elimination of Registration Tax, which has become more expensive since it has been linked to the strictest WLTP emissions protocol since January, which requires a 4.75% rate on a large number of vehicles that on December 31 were exempt from this tax. The Government has turned a deaf ear to the clamor of the automobileBut it has calmed things down a bit by rolling out an arsenal of aid for purchasing new plug-in vehicles.
Tax margin in Spain
Germany is the country that collects the most car taxes for its largest number of vehicles, but is far from the top when it comes to taxes paid per car, amount calculated at 1,963 euros. There are six countries of the European Union that tax the vehicle more: Belgium, Austria, Finland, Ireland, Denmark and the Netherlands. Each car that is driven in Belgium contributes to the State 3,187 euros, almost 500 more than an Austrian vehicle (2,678) and even more compared to the third country with the highest tax application, Finland (2,523 euros).
Spain, with 1,068 euros per car, is among the best treated by the treasury of the entire European Union. Each car in Greece pays 1,264 and in Portugal 1,528.
Taxes per vehicle
Belgium: 3,187 Austria: 2,678 Finland: 2,523 Ireland: 2,438 Denmark: 2,251 Netherlands: 2,158 Germany: 1,963 France: 1,911 Italy: 1,727 Sweden: 1,561 Portugal: 1,528 Greece: 1,264 Spain: 1,068
According to the criteria of
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