Senate debates PEC with IPVA exemption for vehicles over 20 years old

voting

Text has the favorable opinion of the Constitution and Justice Commission (CCJ)

The Plenary held this Tuesday (27) the first discussion session, in the first round, of the Proposed Amendment to the Constitution (PEC) 72/2023, which exempts vehicles from the incidence of Motor Vehicle Ownership Tax (IPVA). land with more than 20 years of manufacture. The matter will be included in the voting agenda this Wednesday (28) and Thursday (29).

Presented by Senator Cleitinho (Republicanos-MG) and other senators, the text has the favorable opinion of the Constitution and Justice Commission (CCJ), based on a report presented by Senator Marcos Rogério (PL-RO).

The PECs undergo five discussions in the Plenary before being voted on in the first round. Approval occurs when the text is accepted by at least two-thirds of the senators (54), after two rounds of deliberation. For the constitutional change to take effect, the proposal must be approved in both Houses of Congress.

PEC 72/2023 extends the immunity provided for in item III of paragraph 6 of article 155 of the Constitution, which lists vehicles exempt from taxation, to cover passenger land vehicles with twenty years or more of manufacture.

Tax justice

The justification for the PEC points to the advances in the tax reform, recently approved by the National Congress, towards tax justice, in which the scope of IPVA for land, water and air vehicles was increased, with exceptions provided for in the provisions of article 155 of the Constitution, in relation to which tax immunity was granted.

However, the authors of the proposal highlight that, despite the progress, the reform failed to deal with another important aspect related to tax justice: the taxation of land passenger cars that were manufactured many years ago.

The senators point out that, from 2020 to 2021, vehicles over 20 years old increased from 2.5 to 3.6 million, mainly due to Covid-19, which caused a considerable increase in the price of vehicles, including used ones. , and the fall in the purchasing power of the population.

Faced with such a scenario, the authors of the PEC understand that the principles of fiscal justice and economic capacity require Congress to take measures to ensure that these Brazilians maintain ownership of their vehicles.

According to the report by senator Marcos Rogério, PEC 72/2023 creates a new hypothesis of tax immunity that could generate some loss of revenue only in the states of Minas Gerais, Pernambuco and Santa Catarina. In all other states there is provision for IPVA exemption for vehicles over 20 years old, with in some cases exemption being granted for vehicles over 10 years old. The Federal Court of Auditors (TCU) has already expressed its understanding, in Ruling 1,205, of 2014, according to which tax immunities would not be considered tax benefits, not being subject to the requirements of the rules of budgetary-financial law.

*With information from Agência Senado

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