Spain tops up car subsidy scheme by 175 million euros

Related Topics

MADRID (Reuters) -- Spain has expanded a car subsidy program by 175 million euros ($238 million) and estimates it should generate related tax income of 1 billion euros, Deputy Prime Minister Soraya Saenz de Santamaria said.

Under the scheme, car owners who scrap their old car and buy a new one get a subsidy of 2,000 euros, half from the government and half from the carmaker.

The PIVE program, expanded four times to total 465 million euros, indirectly boosts public coffers as cars in Spain are subject to a registration tax as well as value-added tax.

Spanish car sales jumped 18 percent in December, the fourth month of growth, and rose 3 percent overall in 2013, data from carmakers' association Anfac showed.

Contact Automotive News

Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

Or submit an online comment below. (Terms and Conditions)


Subscribe
 
 

Latest Headlines

More »
2014 Geneva Motor Show tease
2013 Rising Stars 
2013 Rising Stars 
Rocket Fuel