PL exempts electric and hybrid vehicles from import tax

The CAE (Economic Affairs Committee) of the Senate can vote at any time on the PL 403 / 2022, by senator Irajá (PSD/TO), which exempts EVs (electric vehicles) and hybrids from import tax until December 31, 2025.

The proposal attempts to extend the incentives of a September 2020 resolution from GECEX, which zeroed the 35% rate for most cases of importing these cars, and reduced it to 2% or 4% in some situations.

According to the senator, the objective of the PL is to increase the scope of the benefit already granted by the Executive Branch and provide legal security for companies, since, once it becomes law, the incentive cannot be withdrawn without the approval of the National Congress.

Still according to him, as the country does not have a consolidated industry in the manufacture of inputs, components and equipment that can assemble these cars, it is essential to exempt such taxes.

“The impact on the final cost could reduce the price of electric and hybrid vehicles for the Brazilian end consumer by around 10 to 20%”, he highlighted.

“There is still a long way to go before economic viability, because the price of a fleet powered by fossil fuels is infinitely lower,” explained the author of the project, concluding that it makes no sense for the country not to encourage the use of EVs.

EV market in Brazil

Data from ABVE/Renavam showed that sales of light electric vehicles in Brazil grew 115% in the first quarter of 2022, reaching 9.844 units, compared to 4.582 in the same period of 2021.

Last month's 3.851 electrified vehicle registrations represent an increase of 106% over March of the previous year (1.872) and 12% over February 2022 (3.435).

“Brazilian consumers already prefer low-emission vehicles. The numbers are clear: in the two years of the pandemic, electrified vehicles grew exponentially, while the combustion vehicle market regressed”, commented Adalberto Maluf, president of ABVE.