Spain has expanded a car subsidy program by €175 million ($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.