Electric cars that exceed import quotas will pay tariffs

Brazil Agencyi Brazil Agency https://istoedinheiro.com.br/autor/agencia-brasil/

01/01/2024 – 14:20

Starting this month, electric, hybrid and hybrid cars plugin purchased outside the country, you will have to pay Import Tax again. The rates will be gradually restored until they reach 35% in July 2026.

During this period, there will be initial quotas for exempt purchases from abroad. Therefore, tariffs will only apply if imports exceed established limits.

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According to the Ministry of Development, Industry, Commerce and Services, the measure aims to help the national industry, developing the sector's production chain and accelerating the decarbonization (reduction of carbon dioxide emissions) of the Brazilian fleet.

The schedule for restoring tax rates for electric cars is as follows: 10% Import Tax in January 2024; 18% in July 2024; 25% in July 2025; and 35% in July 2026.

For hybrid cars, whose batteries are recharged when braking or when the combustion engine is running, the tariff will be reestablished as follows: 12% in January 2024; 25% in July 2024; 30% in July 2025; and 35% in July 2026.

Hybrid cars plugin, also powered by fossil fuels and recharged at the socket, will be charged 12% in January 2024; 20% in July 2024; 28% in July 2025; and 35% in July 2026.

There is also a fourth category, that of “electric cars for freight transport”, or electric trucks, which will start with 20% taxation in January and will reach 35% in July 2024. In this case, the resumption of the full rate is faster because there is sufficient national production.

The decision was approved in November by the Executive Management Committee (Gecex) of the Chamber of Foreign Commerce (Camex). The resolution with the new rates and quotas was published at the end of November.

Quotas

Regarding tax-exempt quotas, the ministry informed that the limits are temporary and aim to preserve the possibility of serving new importers, while the national electric vehicle industry develops.

For hybrids, quotas will be US$130 million until June 2024; US$97 million until July 2025; and US$43 million until June 30, 2026.

For hybrids pluginof US$ 226 million until July 2024, US$ 169 million until July 2025 and US$ 75 million until June 30, 2026.

For electric vehicles, on the same dates, respectively, US$283 million, US$226 million and US$141 million. For electric trucks, US$20 million, US$13 million and US$6 million.