The 2021 State Budget has just now been approved, but it has already been contested by ACAP (Association of Automobile Trade in Portugal) for the lack of measures aimed at stimulating the sector.
After all, the automobile sector has a considerable relevance in the national economy. To start with, it represents 8% of the national GDP and a turnover of more than 33 billion euros, and it is an industry responsible for a GVA (Gross Added Value) of 4.2 billion euros.
In addition to this, the sector guarantees 21% of the State's total tax revenue (about 10 billion euros) and employs a total of 152 thousand workers, with its exports (which correspond to 15% of national exports) quoted at around 8.8 billion euros.
There is a lack of incentives for slaughter, but not only
Taking into account the figures presented by the automotive sector, ACAP regrets that in a year in which it registered falls of more than 35% in the last 10 months support and development measures are not foreseen in the State Budget for 2021.
Subscribe to our newsletter
One of the measures that ACAP regrets most are the incentives for scrapping end-of-life vehicles, a measure in force in Spain, France and Italy since June.
According to Hélder Pedro, secretary general of ACAP, this measure would represent “an opportunity not only for the automobile sector, but for the Government”, stressing that “with this measure, it would be possible, for example, to minimize losses in excess of 270 million euros that the executive only estimates in ISV”.
In addition, the secretary general of ACAP also added that “the implementation of measures to encourage slaughter would be (…) in addition to being a priority from an economic point of view, an important (and urgent) step in the field of environmental management”.
According to figures from 2019, the national car fleet has an average age of approximately 13 years, which is higher than the European average, which is fixed at 11 years.
Finally, ACAP also criticized the approval of the end of tax incentives for hybrid and plug-in hybrid vehicles and recalled that due to the absence of measures to encourage slaughter, not only Portugal "stays further away from the assumed environmental pacts" but will also lead to a growth in the import of used vehicles.