The new registration tax will reduce sales by 100,000 units and raise the price by 1,000 euros per car

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The start of the year marks the implementation of the new vehicle registration levy, resulting in a projected average price surge of up to €1,000 per vehicle due to tightened emission standards.

Calculations by the Federation of Automotive Dealers Associations (Faconauto) indicate this price hike will cause a reduction in vehicle sales of up to 100,000 units this year.

Faconauto’s president, Gerardo Perez, stated in a press briefing that the tax increase will negatively impact sales, echoing a similar trend observed in the first half of 2021 before the tax was temporarily suspended until January 1st.

An Eco-Friendly Handicap?

This tax increase is ostensibly justified by environmental concerns. The introduction of new European emission regulations (WLTP) on January 1st of the previous year altered vehicle gas measurement parameters, making them considerably stricter.

Consequently, most vehicle models now exhibit higher carbon dioxide (CO2) emission figures, directly impacting their price in Spain because registration tax is directly linked to CO2 emissions. This demonstrates how supposedly eco-friendly policies may disproportionately affect lower-income individuals, limiting their access to more modern, emission-efficient vehicles, such as electric models.

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