Portugal has witnessed a consistent rise in the number of vehicles since 2010, but the majority of cars currently in use are relatively old.

Amid ongoing controversy surrounding the government's proposed reform for the Single Circulation Tax (IUC), which suggests that cars manufactured before 2007 will bear an 'environmental component' fee, Pordata's data reveals that a significant proportion of vehicles on Portuguese roads, more than two-thirds, are aged 10 years or more.

As reported by NM, data covering the years 2010 to 2021 indicates that, in the last recorded year, there were 5,648,121 light and heavy passenger vehicles circulating in Portugal (excluding goods vehicles). Of this total, approximately 64.7% (3,656,623 vehicles) were aged 10 or older in 2021.

Conversely, the number of passenger vehicles less than two years old has steadily declined. In 2021, there were 293,296 newly registered vehicles, a considerable drop compared to the 370,000 registrations in 2020 and the 455,000 in 2019 and 2018.

The government's proposal for the 2024 State Budget (OE2024) entails an "environmental reform of the IUC" for older vehicles. The document specifies that "IUC rates will increase for vehicles manufactured before 2007, as a complementary measure to promote the renewal of national vehicle fleets." This will affect around three million light vehicles (category A) and half a million motorcycles (category E).

While the maximum annual increase is capped at 25 euros (approximately two euros per month), the government has made it clear that this limit will be progressively raised over the years. Eventually, the IUC will encompass the entire relative taxation of CO2 emissions for these vehicles. Photo by Photography by: Osvaldo Gago, Wikimedia commons.