Billing starts this Monday (January 1st) with rates starting at 10% for vehicles and 10.8% for solar energy generators
The federal government begins this Monday (January 1, 2024) to tax imported electric and hybrid vehicles. The charge will be used to fund the MP 1,205 of 2023, published on December 30th with R$19 billion in tax incentives for the automotive sector. Solar energy generation panels manufactured abroad will also be taxed.
Tax rates for electric vehicles had been zero since 2015 after government incentives Dilma Rousseff (PT). The objective at the time was to encourage the entry of these models into the country. Now, the management of Luiz Inácio Lula da Silva (PT) wants to give more competitiveness to factories located in the country, which are able to produce and gradually meet national demand.
The resumption of import tax will be gradual. For 100% electric cars, the charge will start at 10% and reach 35% in July 2026. Hybrids (powered by fuel and energy) will pay a rate of 15% and so-called hybrids plugin (which can be connected to sockets) 12%.
There is also a 4th category, that of “electric cars for freight transport”, electric trucks. These vehicles will have an initial tax rate of 20% and will reach 35% in July 2024. In this case, the resumption of the full tax rate is faster because there is already sufficient national production, according to the government.
The objective of the staggered resumption is to allow automakers located in the country that are developing electrified model projects to have time to put them into operation. Thus, while national factories cannot cope with demand, there will still be a reduced rate to encourage imports.
Companies will have until July 2026 to continue importing exempt up to certain value quotas, also established by model. In other words, the rate will still be 0% in the 1st semester if imports meet a value limit:
- for hybrids: the quotas will be US$ 130 million until July 2024. US$ 97 million until July 2025 and US$ 43 million until July 2026.
- for hybrids plugin: US$226 million until July 2024, US$169 million until July 2025 and US$75 million until July 2026;
- for electrical: US$283 million for July 2024, US$226 million until July 2025 and US$141 million for July 2026;
- and for electric trucks: US$20 million in July 2024, US$13 million in July 2025 and US$6 million in July 2026.
SOLAR PANELS
The government will also begin taxing photovoltaic energy generation panels this Monday. The TEC (Mercosur Common External Tariff) on the import of modules will be 10.8%. The rate will increase in 2025.
According to the government, the measure also aims to benefit national panel production and attract investment to the country, which currently imports almost all panels from China.
To give the market time to adapt to the new rules, the government also established import quotas at 0% in decreasing values until 2027. The quotas will be:
- US$ 1.13 billion between January and June 2024;
- US$1.01 billion between July 2024 and June 2025;
- US$717 million between July 2025 and June 2026;
- US$403 million between July 2026 and June 2027.
WIND ENERGY
There are also changes for wind turbines. In this case, the power limit for tariff exemption increases.
Until the end of 2023, wind turbines with power above 3,300 kVA (kilovoltamperes) could be purchased abroad with zero import tax. According to the government, however, Brazilian companies are already able to produce above this limit or have plans to do so in the short or medium term.
Thus, the limit was raised. From this Monday onwards, only equipment with a power greater than 7,500 kVA will continue to be exempt, and for just one year.
From 2025 onwards, all purchases outside the country will incur 11.2% import tax – and any exemptions, for any power, will only be granted upon proof that there is no equivalent national production.
#Government #begins #tax #imported #electric #cars #solar #panels
