The negative correlation between the number of cars sold and the amount collected for the tribute is not an effect of a conjuring statistics. The main reason for the gap is on the wrench that is taking the petrol against the diesel. By issuing more CO[2, a fundamental variable to calculate the registration tax, there are more automobiles are required to pay the tax, and in greater quantities. Industry sources point out another reason complementary: the increase of vehicles with more weight, consume more and therefore have a higher level of emissions.

MORE INFORMATION

The registration tax grows at record pace by the pull of the petrol The Government, mitigates most of the fiscal impact of the new emissions standard for cars

Since in 2018 the sales of petrol cars have marked a milestone by surpassing for the first time in more than two decades the diesel. The outbreak of the dieselgate in 2015, that uncovered the system of cheating used by Volkswagen to reduce the polluting emissions of their models, and the legal uncertainty that has been installed around the future of diesel vehicles —from the ads on the limitation to their movement plans increases tax— have contributed in recent years to demonize this fuel and drive the car of gasoline.

vehicle Registration

Number of vehicles

Total

Gasoline

Diesel

1.600.000

1.400.000

1.200.000

1.301.986

1.000.000

838.258

800.000

600.000

400.000

463.728

200.000

0

2006

09

11

13

15

17

19

Income tax

Million euros

2.000

1.933

1.500

1.000

616

500

274

0

2006

09

11

13

15

17

19

Vehicles exempt from the tax

In percentage

100%

77

75

74

70

68

62

59

52

43

37

32

22

0

08

09

10

11

12

13

14

15

16

17

18

19

Source: Ministry of Finance.

THE COUNTRY

vehicle Registration

Number of vehicles

Total

Gasoline

Diesel

1.600.000

1.400.000

1.200.000

1.301.986

1.000.000

838.258

800.000

600.000

400.000

463.728

200.000

0

2006

07

08

09

10

11

12

13

14

15

16

17

18

19

Income tax

Million euros

2.000

1.933

1.500

1.000

616

500

274

0

2006

07

08

09

10

11

12

13

14

15

16

17

18

19

Vehicles exempt from the tax

In percentage

100%

77

75

74

70

68

62

59

52

43

37

32

22

0

08

09

10

11

12

13

14

15

16

17

18

19

Source: Ministry of Finance.

THE COUNTRY

vehicle Registration

Number of vehicles

Total

Gasoline

Diesel

1.600.000

1.516.271

1.400.000

1.200.000

1.301.986

1.000.000

838.258

800.000

600.000

642.408

400.000

463.728

481.025

200.000

185.034

0

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

tax Revenues by enrollment.

Vehicles exempt from the tax

Million euros

In percentage

100%

2.000

1.933

1.500

1.000

77

75

74

616

70

68

62

59

500

52

43

37

32

22

274

0

0

08

09

10

11

12

13

14

15

16

17

18

19

06

09

11

13

15

17

19

Source: Ministry of Finance.

THE COUNTRY

The data released on Tuesday by the Tax Agency confirms this trend: of the 1.301.986 cars sold —in front of the 1.362.387 of the previous year, 64.4% was gasoline and 35.6% of diesel oil. In 2018, the gap was lower: of the total number of vehicles registered, 58.3% was gasoline and 41.7% of diesel oil.

Also the average emissions per vehicle reflects this change in the board. In 2019 amounted to 121 grams of CO2 per kilometer, compared to 119 in 2018. It also reduced the number of cars exempt from paying the fee, it is a privilege intended for cars that emit less than 120 grams of CO2 per kilometer. In 2018, the 68.4% of the vehicles were freed of the tax; last year this percentage was 59%.

And this was despite the fact that the industry has had to internalize to forced marches to the maxim that the polluter pays principle and immerse themselves in a profound transformation to the climate challenge and the increasing regulatory pressure. For the future, the goals are ambitious: Brussels requires that manufacturers reduce the maximum limit of emissions of its vehicles to 80 grams of CO2 per kilometre in 2025 and to 60 in 2030.

Anfac, employers ‘ association Spanish of manufacturers of automobiles, it takes time for that is serious the use of vehicles instead of purchase, which is already subject to VAT. In other words, ask for the deletion of the registration tax and instead introduce environmental criteria in road tax —which is paid every year in function of the horsepower tax automobile—.

In September of 2018 also entered into force the new regulations of emissions of the EU, which envisages a more strict for measuring the pollution from the vehicles of new manufacture. This system, known as the WLTP, implies that, in practice, new cars pollute about 20% more with regard to the results reflected by the previous standard.

however, this regulation is having a to gradually enter. The Government has established a transitional period until 1 January 2021, during which it shall be considered part of the ascent of the emissions determined by the WLTP. The industry estimates that at this stage about 5% of the vehicles that were previously exempt would have to pay the levy, a percentage that is set to rise to 10% or 20% once the rule begins to operate at full throttle.

Grows the number of vehicles that more emit

The current legislation establishes four forks CO2 emissions to assign different tax rates. According to the Treasury, by 2019, grew the enrollment of the cars, more pollution, generate more than 160 grams of carbon dioxide per kilometre. Accounted for 6.1% of the total and grew by 15% with respect to 2018. By contrast, the enrollment of those with less than 120 grams of CO2 per kilometre fell by 17.4%.