Government ends ISV exemption for commercial vehicles

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Commercial vehicles, which until now benefited from an exemption from Vehicle Tax (ISV), will lose this benefit as of July 1 of this year, according to a law now published in Diário da República.

This is a measure that affects light goods vehicles, with open box, without box or closed box that do not have a cab integrated into the bodywork , with a gross weight of up to 3500 kg and without four-wheel drive.

According to accounts from the Portuguese Association of Automobile Commerce ACAP, cited by Jornal de Negócios, this type of model represents 11% of commercial vehicle sales in our country.

car market
Since 2000, the average age of cars in Portugal has risen from 7.2 to 12.7 years. The data are from the Automobile Association of Portugal (ACAP).

The aforementioned newspaper also reports on another tax benefit that will disappear under the Single Circulation Tax (IUC). Until now, a 50% discount on the tax was foreseen in the case of vehicles of category D — also for the transport of goods — provided they are “authorized or licensed for the transport of large objects”.

In a note justifying the proposed law, the Government explains that the exemption from ISV ​​and other benefits were “unjustified and contrary to the environmental principles that underlie the very logic of those taxes”, adding that “they have proved to be permeable to abusive uses”.

ACAP has already reacted, through its general secretary, Helder Pedro, who was surprised by the decision and who revealed that he had not been previously informed of this change.

Such a measure is not perceived, 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.

Helder Pedro, Secretary General of ACAP

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