May 23, 2022

Hardwood Paroxysm

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Car incentives on the road, expected to be 650 million for 2022 – regulations and institutions

The car incentives are scheduled to arrive early next week at the Dubai Auto Center, which is expected by Wednesday, and will cover the period 2022-2024. The budget for 2022 is 650 million euros. He appeared – according to what was learned – from the meeting at Chigi Palace between Under Secretary Roberto Garofoli and the ministries of Daniele Franco, Giancarlo Giorgetti, Roberto Cingolani, Enrico Giovannini and Andrea Orlando. The incentives will relate to electric, hybrid and Euro6 cars and will be reduced if there is no scrap. The company’s fleets will not be affected. There are motorcycles with obligatory scrapping and car sharing.

If companies are excluded from incentives to buy cars, as some dpcm drafts show, it will be a blow to the sector. Then add to the new three-year extension of the VAT rebate for company cars that the government intends to introduce to the European Union, it’s going to get really tough. This was said by the Director General of Onray, Andrea Cardinale, who raised the alarm in an interview with the American news agency (ANSA) that took place shortly before Chigi Palace, and also made some proposals.
“The exclusion of legal entities from the incentives – explains Cardinale – is unprecedented and severely affects a sector that alone accounts for 37.5% of purchases. It is – and he continues – lower than the percentage in other countries, such as Germany, which is up to 65%.” The proposal made by Unrae is to gradually deduct VAT and incentives that take into account CO2 emissions, favoring more efficient cars and gradually reducing them to the most polluting ones. In detail, Unrae is proposing to increase the percentage of the value-added tax rebate currently to 40% up to 100% for vehicles within the 0-20 g/km CO2 emissions range, to 80% for vehicles within the 21-60 CO2 emissions range g/km and 50% for vehicles within the 61-135 g/km CO2 emissions range.
“The way — explains Cardinale — cuts costs that executives consider too high so far: We go from an estimated billion to about 400 in the first year, and then we grow.”
In this regard, Unrae requested the opening of an institutional table.
Excluding the company’s cars from the incentives, if approved, according to Cardinale, will have an impact on all product segments that use fleets, because costs continue to rise. Moreover, with the entry into force of the General Register of Foreign Vehicles, making it easier to drive a foreign car in Italy, there may be a tax drain towards other countries because it will be more convenient to use the services provided by companies based in states with higher tax rates.
“The company’s car – more details Cardinally – has an average life of three and a half years, versus roughly 12 cars that drive on our roads, with a significant impact on the environment and in terms of safety. Without consideration – Unrae’s general manager concludes that fleets The abandoned company has become a gateway to new models for those who choose used cars.”

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