Government resumes tax for electric cars on January 1, 2024

mobility

Import tax (IPI) for electric cars will compensate for the green mobility program launched by the government

The vice-president of the Republic and minister of Development, Industry, Commerce and Services (MDIC), Geraldo Alckmin, said this Sunday (31) that the resumption of the import tax (IPI) for electric cars, from January 1st, 2024, will compensate for the green mobility program launched now.

On Saturday (30), the government published a provisional measure (MP) that creates the Green Mobility and Innovation Program (Mover), with incentives for sustainable vehicles.

The program provides tax incentives for companies to invest in decarbonization. The benefits will be given over a four-year cycle, with the amounts converted into financial credits, totaling more than 19 billion in credits granted. The first incentive, in 2024, will be R$3.5 billion.

Electric, hybrid and plug-in hybrid cars purchased outside the country will again be gradually subject to import tax from January, according to a decision by the Executive Management Committee of the Chamber of Foreign Trade (Gecex-Camex) announced in November.

“Accelerated depreciation”

In addition to this program for sustainable vehicles, the government sent a bill (PL) to Congress on an urgent basis, which deals with the so-called “accelerated depreciation”. The objective of this project is to encourage economic sectors to invest in new machines, equipment, devices and instruments.

Initially, R$3.4 billion will be allocated to the program. The proposal also foresees a second phase, which will expand the sectors to be served.

This tax waiver, according to Alckmin, will be offset by an increase in the import tax (IPI) for solar panels.

“We want to produce solar panels here (in national territory). I’m not even talking about the cell, but we have to manufacture the board in Brazil”,

declared the minister this Sunday.

The tax on the import of electric vehicles in Brazil was zeroed in 2015, at the beginning of the second Dilma Rousseff government. At the time, the rate was up to 35%.

How will it work

In the case of hybrid carsthe tax rate starts at 15% and will scale as follows:

• 15% in January 2024;
• 25% in July 2024;
• 30% in July 2025; It is
• 35% in July 2026.

For plug-in hybridsthe rates will be:

• 12% in January 2024;
• 20% in July 2024;
• 28% in July 2025; It is
• 35% in July 2026.

To the electricalthe sequence is:

• 10% in January 2024;
• 18% in July 2024;
• 25% in July 2025; It is
• 35% in July 2026.

There is also a fourth category, that of “electric cars for freight transport”, or electric trucks, which will start with 20% taxation in January and will reach 35% in July 2024. In this case, the resumption of the full rate is faster because there is sufficient national production.

*With information from Metrópoles

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