MADRID, Jan 10 (Reuters) - Spain has expanded a car subsidy programme 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 on Friday.
Under the scheme, people who scrap their old car and buy a new one get a reduction of 2,000 euros, half from the government and half from the carmaker.
The PIVE programme, 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 rose 18.2 percent in December, the fourth month of growth, for a 3.3 percent rise overall in 2013, data from carmakers' association Anfac showed.
($1 = 0.7361 euros) (Reporting by Robert Hetz; Writing by Elisabeth O'Leary; Editing by Mark Potter)