The government of the State of São Paulo announced, this Wednesday (29) at Palácio dos Bandeirantes, that it has reduced the ICMS (Tax on Circulation of Goods and Services) on buses, trucks and electric vehicles, from 18% to 14,5%. “These measures put São Paulo in the national leadership of electromobility, by supporting clean technologies for public, individual and cargo transportation”, said Adalberto Maluf, president of ABV (Brazilian Electric Vehicle Association).
“It’s a big step towards encouraging innovation in São Paulo’s industry and reducing air pollution and noise levels in our cities. We congratulate Governor João Doria for the initiative, which should encourage the growth of the sector”, he added.
The new rates will come into force from January 2022. The ICMS cut for electrified cars is an old demand from ABVE, already presented to the São Paulo authorities in successive meetings.
Read more: State of SP leads the electric vehicle market
Proactive
The São Paulo government also announced the creation of ProAtivo, a R$1 billion program that will allow the use of ICMS credits for new investments in machinery and equipment. An adjustment to the Budget Law will be sent to the State Legislative Assembly already foreseeing the new measures. According to ABVE, it will be the largest budget in the history of São Paulo: R$286 billion, of which R$50 billion will be in contributions.
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