Chinese multinational calls the return of the tax on imports of electric vehicles a ‘misstep’; government wants to ‘stimulate national industry’

Chinese multinational calls the return of the tax on imports of electric vehicles a ‘misstep’;  government wants to ‘stimulate national industry’

Taxation on electrified vehicles will be gradually reestablished from January, but the market leader defends a greater tax escalation. Electrified car from the Chinese multinational BYD BYD Disclosure The institutional director of the Brazilian branch of the Chinese multinational BYD, Marcello Von Schneider, stated this Tuesday (14) that he “felt like a hindrance” to the resumption of the import tax on electric, hybrid and plug-in hybrids. Last week, the federal government decided to return the tax from January 2024 in a staggered manner to “stimulate Brazilian industry”. Understand the rates in this report. In an interview with g1, at the company’s headquarters in Campinas (SP), Schneider said that BYD is in favor of resuming the tax, as the company is setting up three factories in Camaçari (BA), but defended a change in the beginning of taxation for that companies in the sector have time to start production in Brazil. “We felt like a mistake. So, unfortunately, pressure from other sides convinced the government and we are going to work now based on these new numbers, both tax rates and import quotas, and see what we can do. Unfortunately, who The final consumer is asking again”, said the executive to g1. More staggered rates The director of the Chinese giant stated that, if the objective of the measure was to bring more investments, this will not happen in the short or medium term. For Schneider, a greater scaling of tax rates is necessary. “I think a transition over a period of five years with quotas and a rate rising a little less over those five years would be something very interesting,” he argued. Marcello Von Schneider, director of BYD Brasil BYD Disclosure National industry must be stimulated, says Alckmin g1 sought out the Ministry of Development, Industry, Commerce and Services to comment on the Chinese giant’s notes, but so far has not received a response. Last week, when announcing the resumption of the tax, the vice-president and minister of the portfolio, Geraldo Alckmin (PSB), justified the return by pointing to the need to encourage national industry. “Brazil is one of the main automobile markets in the world. We must encourage national industry towards all technological routes that promote decarbonization, encouraging investments in production, maintenance and creation of higher-skilled and better-paid jobs.” According to Geraldo Alckmin, the deliberation represents a real incentive for new industries to install themselves or start producing electrified vehicles, generating jobs and income. “Sustainability is guaranteed by privileging low-carbon technologies,” he concluded. Vice President Geraldo Alckmin Valdinei Malaguti/EPTV Anticipation of the Brazilian factory According to the government of Bahia, the Chinese multinational’s factories in the state should start producing between the end of 2024 and the beginning of 2025. Asked by g1 whether taxation can accelerate the operation in Camaçari, the executive stated that “any anticipation, if possible, will be done”. “Whatever we can accelerate to be able to start manufacturing as soon as possible, the better. But there are things that we cannot accelerate, but we are still within our schedule, within our plan”, stated Schneider. Impact on vehicle prices According to the executive, the company is studying scenarios with these rates and quotas and will “try to minimize the impacts on the end consumer”. According to the Brazilian Electric Vehicle Association (ABVE), BYD is currently the leader in the electrified vehicle market, which includes electric and hybrid vehicles. What the import taxes look like The government informed that the percentages of “progressive resumption” of taxation for automobiles will vary with the “electrification levels” and the production processes of each model. Combustion, hybrid and electric cars: understand the differences Hybrid cars: 12% in January 2024 25% in July 2024 30% in July 2025 35% in July 2026 Plug-in hybrids (externally recharged): 12% in January 2024 20% in July 2024 28% in July 2025 35% in July 2026 Trams: 10% in January 2024 18% in July 2024 25% in July 2025 35% in July 2026 Trams for transport of cargo or electric trucks: 20% in January 2024 35% in July 2024 How electric cars work Quotas The government explained, however, that companies also have until July 2026 to continue importing with exemption up to certain value quotas, also established by model. For hybrids: quotas of US$130 million until July 2024; US$97 million until July 2025; and US$43 million until July 2026. For plug-in hybrids: US$226 million until July 2024, US$169 million until July 2025 and US$75 million until July 2026. For electric vehicles: the same dates, respectively US$ 283 million, US$ 226 million and US$ 141 million. For electric trucks: US$20 million, US$13 million and US$6 million. VIDEOS: Everything about Campinas and the region See more news from the region on g1 Campinas

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