The brutal increase foreseen in the Single Circulation Tax (IUC) for those who drive a car with registration prior to 2007 will also be taxed in the Autonomous Region of Madeira (RAM).
So this is basically your year car tax, and some people will see huge increases.
A friend of mine will see his tax go from about 70 euros a year to over 300 a year.
There is a little good news, and that is by law the yearly increase cannot be greater than 25.00 euros, so it will take many years for some cars to reach the total they say is necessary to pay.
Aimed at owners of motor vehicles, the IUC aims to attribute to them the environmental and circulation costs associated with these, being calculated according to the cylinder capacity and CO2 emissions of the vehicles. This tax, which abolished the old Municipal Tax on Vehicles, Circulation Tax and Trucking Tax, and also the so-called car seal (decal for affixing to the vehicle) – currently it is the IUC payment receipt that serves as proof of payment of the tax, and must therefore accompany the remaining vehicle documentation.
The IUC covers all motor vehicles of categories A, B, C, D and E, vessels of category F and aircraft for private use (category G), registered or registered in Portugal or which remain in the country for a period longer than 183 days (six months) in each calendar year. Only goods vehicles with a gross weight of 12 tonnes or more are an exception.
The brutal increase foreseen in the Single Circulation Tax (IUC) for those who drive a car with registration prior to 2007 will also be taxed in the Autonomous Region of Madeira (RAM).
Many increase will be well over 400%.