The change was already planned and takes effect today. “Light goods vehicles, with open box or without box, with a gross weight of 3500 kg, without four-wheel drive” are no longer exempt from paying the ISV (Vehicle Tax).
This exemption, which used to be 100%, is now 90%, and this type of vehicle must pay 10% of this tax following an amendment to the ISV Code published in April, which revoked the article granting them full exemption.
According to accounts from the Portuguese Automobile Trade Association (ACAP), this type of model represents 11% of commercial vehicle sales in our country, with the Ministry of Finance pointing out that in 2019 4162 vehicles of this type were sold.
The reasons behind the end of the exemption
As we told you a few months ago, in a note justifying the proposed law, the Government explained that this exemption from the ISV and other benefits were "unjustified and contrary to the environmental principles that underlie the very logic of those taxes", adding that "have proved to be permeable to misuse”.
Now, the executive also presents other arguments for the end of exemption from ISV payment by these commercial vehicles, citing the Mobility and Transport Institute, IP. which has advocated “avoiding, in the case of goods vehicles, different rates depending on the capacity, interior heights, or gross weights, a fact that sometimes leads to transformations in vehicles to conform them to the lower rates ”.
On the part of the automobile trade associations, they not only considered that the measure harms the sector, but also criticized the fact that it was aimed at a type of vehicle that is used primarily as a work tool.
Upon the announcement of this measure, the secretary general of ACAP, Hélder Pedro said: “It is not possible to see such a measure, at a time of economic crisis, when companies are already facing so many difficulties, it does not make sense to revoke these. A good part of these vehicles are manufactured in Portugal, which means that there may also be companies directly affected by this measure out there”.