Automotive

Gov’t announces progressive tax for imported electric vehicles in Brazil

Jan, 02, 2024 Posted by Gabriel Malheiros

Week 202401

The new tax levied on imports of electric cars in Brazil has been in effect since Monday (1st). The measure was confirmed by Vice President Geraldo Alckmin, who is also the Minister of Development, Industry, Trade, and Services.

The new tax applies to fully electric cars, hybrid models, and plug-in hybrids purchased abroad. The tax will be gradually implemented, with the rate reaching up to 35% of the value by July 2026.

According to Agência Brasil, the idea is to develop the national automobile production chain and not displease manufacturers operating in Brazilian territory. The government confirmed the tax in November of this year after solid pressure from companies in the sector.

Additionally, the revenue will be used to fund social mobility programs partially.

The new taxes for electric cars in Brazil are implemented as follows:

Electric cars:

  • 10% tax from January 2024
  • 18% tax from July 2024
  • 25% tax from July 2025
  • 35% tax from July 2026

Hybrid cars:

  • 12% tax from January 2024
  • 25% tax from July 2024
  • 30% tax from July 2025
  • 35% tax from July 2026

Plug-in hybrid cars:

  • 12% tax from January 2024
  • 20% tax from July 2024
  • 28% tax from July 2025
  • 35% tax from July 2026

Electric cargo vehicles or electric trucks:

  • 20% tax from January 2024
  • 35% tax from July 2024

Not all models will be taxed equally, as there is a minimum limit set for the vehicle’s value through import quotas.

Solar panels also face increased taxes. In this case, the implemented measure is the end of the reduction in the import tariff revoked by the government with the approval of the Chamber of Deputies. The tax, as of January 1st, is now 10.8%. Like vehicles, companies producing solar panels in Brazil can use quotas to offset the value over the next three years.

Source: Mundo Conectado

Click here to read the original text: https://www.mundoconectado.com.br/governo/importar-carros-eletricos-e-placas-solares-no-brasil-esta-mais-caro-a-partir-de-hoje/

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