WLTP results in CO2 and higher taxes, car manufacturers warn

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The new WLTP consumption and emissions homologation tests (Harmonized Global Testing Procedure for Light Vehicles) take effect on September 1st. For now, only models introduced after that date have to comply with the new test cycle. Only from September 1, 2018 will all new vehicles on the market be affected.

These tests promise to correct the insufficiencies of the NEDC (New European Driving Cycle), which has contributed to a growing divergence between the consumption and CO2 emissions obtained in official tests and the consumption we obtain in our daily lives.

This is good news, but there are consequences, particularly those related to taxes. ACEA (European Association of Automobile Manufacturers), through its secretary general Erik Jonnaert, left a warning about the impact of the WLTP on car prices, both in terms of acquisition and use:

Local governments need to ensure that CO2-based taxes will be fair as the WLTP will result in higher CO2 values ​​compared to previous NEDC. If they do not, the introduction of these new procedures could increase the tax burden on consumers.

Erik Jonnaert, Secretary General of ACEA

How will Portugal deal with WLTP?

The greater rigor of the WLTP will inevitably result in higher official consumption and emissions values. It's easy to see the scenario ahead. Portugal is one of 19 countries in the European Union in which CO2 emissions directly affect the tax burden on cars. So, more emissions, more taxes. ACEA mentions an example of a diesel car that emits 100 g/km CO2 in the NEDC cycle, will easily start to emit 120 g/km (or more) in the WLTP cycle.

THE Fleet Magazine did the math. Considering the current ISV tables, diesel cars with emissions between 96 and 120 g/km CO2 pay €70.64 per gram, and above this amount they pay €156.66. Our Diesel car, which has 100 g/km CO2 emissions and goes up to 121 g/km, would see the tax amount rise from €649.16 to €2084.46, increasing its price by more than €1400.

It won't be difficult to imagine countless models moving up the ladder and becoming substantially more expensive, not only in terms of acquisition, but also in their use, since the IUC also integrates CO2 emissions into its calculations.

This is not the first time that ACEA has warned of the WLTP's impact on taxes, suggesting adjustments to tax systems so that consumers are not negatively affected.

A little over a month before the start of the new test cycle, the Portuguese government has not yet commented on an issue that will significantly affect the Portuguese portfolio. The proposal for the State Budget will only be known after the summer, and approval should take place before the end of the year. Although there are still rough edges to the legislation, the technical aspects of the test are already known. Some builders, like the opel it's the PSA group . anticipate and have already published consumption and emission figures according to the new cycle.

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