Government charges import tax again for electric cars

The Ministry of Development, Industry, Commerce and Services reported this Friday (10) that it will once again charge taxes on the import of electric and hybrid cars purchased outside the country, starting in 2024. The taxation will be formally gradual and may reach up to 35% in 2026.

According to the minister and vice-president, Geraldo Alckmin, the measure aims to encourage the decarbonization of national industry. The import tax for these products has been zero since 2015.

“Brazil is one of the main automobile markets in the world. We must encourage the national industry towards all technological routes that promote decarbonization” stated the vice-president.

The ministry defined that the growth schedule for the rate for electric cars will be 10% Import Tax in January 2024; 18% in July 2024; 25% in July 2025; and 35% in July 2026.

The tax rate for hybrid cars will start at 12% in January 2024, increase to 25% in July 2024, 30% in July 2025 and reach 35% in July 2026. And in the case of plug-in hybrid vehicles, in, also powered by fossil fuels and recharged at the socket, will be 12% in January, 20% in July, 28% in 2025 and 35% in 2026.

Quotas abroad

The ordinance with the distribution of quotas for exempt purchases from abroad will only be published in December. According to Mdic, the government intends to preserve the possibility of serving new importers, while the national electric vehicle industry develops.

For hybrids, quotas will be US$130 million until June 2024; US$97 million until July 2025; and US$43 million until June 30, 2026.

For hybrids pluginUS$226 million until July 2024, US$169 million until July 2025 and US$75 million until June 30, 2026.

For electric vehicles, on 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.

Chemicals

The government also decided to reinstate the import tariff on 73 chemical products whose Import Tax had been reduced by 10% in May last year. Tariffs will rise between 0.4 and 1.4 percentage points, depending on the product, following publication in the Official Gazette, scheduled for the next few days.

According to the ministry, the decision was taken to reverse the negative impacts caused to the national industry due to the strong increase in imports and the strong price variation. From January to August this year, the volume of imports over domestic demand grew 47% compared to the same period last year.

With information from Agência Brasil