Cost of Living
Changing car taxes could save 3.2 million liters of fuel per year
A new study by the Portuguese Automobile Association (ACAP) proposes a long-term reform of car taxes, specifically the gradual elimination of the Vehicle Tax (ISV) by 2036 and the simultaneous restructuring and increase of the Single Circulation Tax (IUC). The proposal suggests shifting the tax burden away from vehicle purchase (ISV) toward environmental parameters and vehicle usage (IUC) to encourage fleet renewal and reduce emissions.
Why it mattersThis is a proposal and not yet law, but if adopted, it would shift the cost of owning a car in Portugal by reducing initial purchase taxes while potentially increasing annual circulation taxes, particularly for older or more polluting vehicles.
