Home News Unfair road tax on imported cars to be lowered next year

Unfair road tax on imported cars to be lowered next year

Published on 02/05/2019

Portugal’s government is being as slack as usual by correcting the road tax (IUC) payable on imported cars.

The reduction, forced by Brussels, will come into play in 2020 with thousands of owners still paying road tax as if their imported cars were new at the time of importation.

The legislation is working its way slowly and reluctantly through parliament, meaning that for this year, the current unfair regime will stay in place.

Público gives the example of an Audi Q7, registered is 2007 and imported to Portugal in 2008, pays road tax of €860, while the same car bought in Portugal would pay €62.

This is a problem that has dragged on since 2010 with Brussels opening two infringement proceedings against the Portuguese government. The first, nine years ago, was shelved. The second, opened in early 2019 should end up being ditched as the law will be corrected.

The payment of imported cars is higher because they are charged for the year of registration, ignoring the original registration date.

The European Commission gave Lisbon two months to explain why it continued to charge the high tax rate on imported car tax.

Brussels considers this to be in breach of Article 110 of the Treaty on the functioning of the European Union.