IPVA: SP and MG concentrate almost 50% of the country’s collection – 07/10/2023 – Market

São Paulo and Minas Gerais account for almost 50% of the national collection with IPVA (Tax on Vehicle and Motor Vehicle Ownership), which totaled R$ 52.8 billion in 2021. This represents the value of R$ 247.58 per inhabitant in the country or BRL 473.88 per vehicle.

The data are part of a survey by the IBPT (Brazilian Institute of Tax Planning), coordinated by tax specialists João Eloi Olenike, Gilberto Luiz do Amaral, Letícia Mary Fernandes do Amaral and Cristiano Lisboa Yazbek.

IPVA is the second most important tax for states and the Federal District, after ICMS. A portion of its collection is also shared with municipalities.

The Tax Reform proposal under debate in Congress provides for extending the collection of IPVA to jets, jet-skis and luxury boats. However, even if the text is approved without changes in the Senate, there is a possibility that the measure will not be effective.

Currently, IPVA rates vary according to the region, and some states use lower taxation to attract fleet registration. Normally, this occurs in the states closest to São Paulo, such as Paraná and Minas Gerais, according to Olenike, president of the IBPT.

“This makes a state like Paraná, for example, the fifth in population, but has the third largest fleet of vehicles in Brazil”, he says.

“This differentiation can, on a smaller scale, be treated as a tax war, intentional or not, to attract more IPVA taxpayers.”

According to the IBPT, the highest collection of IPVA per inhabitant is in the Federal District (R$ 415.36), followed by São Paulo (R$ 397.78), Rio Grande do Sul (R$ 342.85) and Paraná (R$ $341.44). The lowest values ​​are in Maranhão (R$ 72.10), Acre (R$ 83.63) and Pará (R$ 88.94).

The largest vehicle fleets are found in the states of São Paulo, Minas Gerais, Paraná, Rio Grande do Sul and Rio de Janeiro. The IPVA collection follows the same order.

In 2021, Brazil had a fleet of 111.5 million vehicles. In terms of vehicle in circulation per inhabitant, the highest proportion is in Santa Catarina (0.79), followed by Paraná (0.72) and Mato Grosso (0.69). The lowest proportion is in Amazonas (0.24).

That year, there was an increase in IPVA collection of 12.22%, above inflation in the period, which, according to the IPCA, from the IBGE, was 10.06%. During this period, recalls the president of the IBPT, used vehicles had great appreciation due to problems in the production of new cars due to the lack of components, an issue related to the pandemic.

Data from the states show that revenue grew by another 24% in 2022, to R$ 65.5 billion. Inflation last year was 5.79%.