Reduction of the Motorcycle Registration Tax

After almost a year of fighting, the Congreso de los Diputados (Spanish Parliament) has finally approved a partial reversal of the tax increase that discriminated against motorcycles compared with cars, so taxes on motorcycles have been reduced.

Last Tuesday, the partial amendment to Law 38/1992, of 28 December, on Excise Duties was published in the Official State Gazette. Since last Christmas, this law had contained this discrimination in favor of cars.

With this correction, the Government is reversing the tax increase on motorcycles, after several parliamentary groups had agreed to table an amendment to end this situation, which put motorcycles at a disadvantage because they had to pay more under an environmental tax, even though they actually emit less pollution than cars.

Following this amendment, the tax means that motorcycles emitting less than 100 g of CO2 per kilometre will not have to pay registration tax. Previously this limit was set at 80 g. Motorcycles declaring emissions of 100 to 120 g/km will move from 9.75% to 4.75%, and those emitting between 120 and 140 g/km will be taxed at 9.75% instead of the previous 14.75%.

Higher taxation applies to motorcycles emitting more than 140 g/km. Those with a power of 74 kW (100 hp) or more, and a power-to-weight ratio equal to or greater than 0.66 kW/kg, will also pay it, regardless of their official emissions.

It remains quite unfair, because motorcycles are taxed more than cars in all the tables for the same emission levels. In addition, the highest tax rate remains for motorcycles above 100 hp. Even so, this correction will help the sector recover from the crisis little by little.

We will keep a close eye on the regulations.

Source: | Solo Moto.es