It will become more expensive to buy a car in 2023

Owning a car will become more expensive in 2023, as the state will update its vehicle tax (ISV) and one-way tax (IUC) with inflation next year. With these updates, the government estimates it will reach another 78 million euros in 2023 compared to 2022, according to the OE2023 proposal.

In terms of tax revenue, which is expected to reach €53.6 billion in 2023 (1.5% more than in 2022), the Executive states that “general ISV rates, as in most IEC [impostos especiais de consumo, inclui o imposto sobre produtos petrolíferos, vulgo ISP, bem como outras taxas sobre bebidas alcoólicas e tabaco]to the expected rate of inflation.

Financial accounts indicate that “revenue in 2023 [de ISV] It grows by 21 million euros compared to 2022. “Based on the calculations made, the government estimates that a total of 480 million euros will be directed to state coffers, an increase of 4.6% over 2022, in value added.

However, in cooperation with the IEC, the state expects to register with the ISV a “25% reduction” in tax spending, bringing this expenditure to 590.6 million euros at the end of 2023. The tax expenditures of the ISP and IABA, in contrast to the increase in the tax calculation on ISV”.

The identical orientation will have an IUC. “Like what happens with the IEC or ISV, the IUC rates will be updated in 2023, so it is expected that revenues in 2023 will increase compared to 2022 by 57 million euros,” it reads. The IUC is expected to generate 500 million euros for the state treasury next year, a 12.9% increase in revenue from this tax compared to 2022.