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Electrified vehicles will pay import tax again next January

The return will be gradual and reach 35% in 2026. There will be a quota system, according to minister Geraldo Alckmin

By Alzira Rodrigues | 11/10/23 | Translated by Jorge Meditsch

The Ministry of Development, Industry, Commerce and Services (MDIC) announced the return of the import tax for electric and hybrid cars made abroad.

The determination previews a gradual return of the tax from next January and creates initial quotas for imports with exemption until 2026, when the index shall reach 35%, the same applied to internal combustion engine vehicles.

“Brazil is one of the world’s largest automotive markets”, said Minister Geraldo Alckmin. “We must encourage national industry toward all technological trends to promote decarbonization, stimulating investments in production and maintaining and creating jobs with better qualification and salaries.

The tribute percentage will vary according to the electrification level and the production process of each model, besides national production.

For hybrid cars, the tax will be 12% in January 2024 and increase to 25% in July 2024 and 30% in July 2025, reaching 35% only in July 2026.

Plugin hybrids will be taxed by 12% in January, 20% in July, 28% in 2025 and 35% in 2026. For full-electric passenger cars, the steps will be 10%, 18%, 25% and 35%.

Another category – electric cargo haul vehicles – will be taxed 20% in January and reach 35% already in July 2024. In this case, the return of full taxation will be faster because the national production volume is higher.

“The tax return chronogram enables the companies to continue their development plans and respects the maturity of the local manufacture for each technology”.

Quotas

There will be a quota system to ensure a transition period that does not harm the importers. For hybrids, the quota will be US$ 130 million up to July 2024, US$ 97 million until July 2025 and US$ 43 million until July 2026.

For plugin hybrids, US$ 226 million until July 2026, US$ 169 million until July 2025 and US$ 75 million until July 2026. For pure electrics, US$ 283 million, US$ 226 million and US$ 141 million on the same dates. For electric trucks, US$ 20 million, US$ 13 million and US$ 6 million.

For Geraldo Alckmin, today’s decision represents a real incentive for new industries to come to the country or start producing electrified vehicles, creating jobs and revenue. “Sustainability is assured by the privilege of low-carbon technologies”, he said.

The resolution was taken this Friday, 11/10, by the Executive Management Committee of the Exterior Commerce Chamber (Gecex-Camex). The minister remarked that the world automotive industry’s transition toward electrification is unavoidable.

“It is time for Brazil to advance, expanding the fleet’s energy efficiency, increasing our international competitiveness and positively impacting the environment and people’s health”, he asserted.

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Alzira Rodrigues

Jornalista formada pela Universidade Metodista de São Paulo, iniciou a cobertura do setor automotivo em 1981 na Sucursal do ABC de O Estado de S. Paulo. Manteve-se na área desde então, passando por outros jornais e também revistas e sites.

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