Abstract
This article describes research that was carried out regarding the tax incentives in Spain associated with the “eco-friendly car,” which are reflected in its share of taxes on motor-driven vehicles. The study focused on the electric vehicle, the hybrid, and the liquefied petroleum gas vehicle. First, the current regulatory framework was addressed. The maximum bonus limits were considered, as well as how each of 68 cities examined the incentives. The qualitative and quantitative differences among the Spanish cities were discussed. Next, the annual tax savings on the Tax on motor vehicles (IVTM) quota were calculated, and the differences in the tax savings depending on the municipality and type of vehicle were noted, as well as the temporal duration of the bonus. Finally, the average tax savings were calculated based on the type of vehicle, power and municipality. It is clear that, although the tax incentives are positive, they must be complemented by other measures if the public authorities in Spain want to achieve a change in mentality and an increase in the acquisition of “eco-friendly cars” that eliminate pollutants (powered by the combustion of gasoline or diesel).
Highlights
On January 21, 2020, the Spanish government declared a “climate emergency” in order to respond to the demands of the scientific community, which calls for “urgent action to safeguard the environment, health and safety of citizens.” [1] Among the objectives proposed by the government in the activation of the climatic a passenger fleet of commercial vehicles passenger car park and commercial vehicles with emissions of 0 grams of CO2 per kilometre [ . . . ] and a fiscal, budgetary and financial system compatible with the necessary decarbonisation of the economy and society.” Added to this is the establishment of “low emission areas” [2] in Spanish cities with more than 50,000 inhabitants
In line with the above, some Spanish cities such as Madrid and Barcelona have already established “zero emission” zones, where only low-pollution vehicles such as electric vehicles, hybrids, and, in some cases, vehicles powered by liquefied petroleum gas (LPG) [3,4] can circulate
Some comparative studies at the international level, such as the one carried out in [9], point out that among the main factors to consider in encouraging greater use of the electric vehicle is “the need for incentives for its expansion, especially via subsidies,” a position that is reinforced in [10] when the author emphasizes the need for “favourable public subsidies” for the electric car
Summary
On January 21, 2020, the Spanish government declared a “climate emergency” in order to respond to the demands of the scientific community, which calls for “urgent action to safeguard the environment, health and safety of citizens.” [1] Among the objectives proposed by the government in the activation of the climatic a passenger fleet of commercial vehicles passenger car park and commercial vehicles with emissions of 0 grams of CO2 per kilometre [ . . . ] and a fiscal, budgetary and financial system compatible with the necessary decarbonisation of the economy and society.” Added to this is the establishment of “low emission areas” [2] in Spanish cities with more than 50,000 inhabitants. [6] indicates that there are advantages such as access to the zero-emission zones and the low pollution that the vehicles generate, which is indicated by [7], adding “parking facilities in the city.” Both [5] and [6] indicate that other possible advantages of the electric vehicle would be, on the one hand, the possible access to subsidies and, on the other hand, tax incentives. Despite the environmental benefits that the “eco-friendly car” can bring, there are voices that do not see electric vehicles in the same way. Despite the positive tax incentives of the IVTM in favor of low-polluting vehicles, the regulations act as limits preventing city councils from even encouraging these types of vehicles.
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