Which cars are exempt from the “sin tax”?

The rules for the first phase of the new tax were established by Provisional Measure 1,399/2026, published by the federal government on November 4th. The charge is scheduled to begin on February 2, 2027, but the MP still needs to be approved by Congress to be valid.

Not all cars, however, will have to pay the new tax. The legislation provides for a zero rate for certain categories, including vehicles intended for people with disabilities, people with autism spectrum disorder and taxi drivers, as well as models that are part of the Sustainable Car program.

One of the main new features is the maintenance of the benefit for models covered by the Sustainable Car program. The list brings together 12 compact car options, all with a 1.0 engine and manual transmission. The rule considers specific versions, therefore, it does not mean that all configurations of the same model will be free from the charge.

The zero rate also applies to vehicles purchased by people with disabilities, people with autism spectrum disorder and taxi drivers, as long as the conditions set out in the provisional measure are respected. For other models, the calculation considers factors such as power, type of engine, fuel, energy efficiency, safety and industrial content.

The initial rule will be temporary and will be valid until December 31, 2027. The government must submit to Congress, by May of that year, a bill to define the permanent rates of the Selective Tax, with application expected from 2028. To better understand the subject, how about remembering the rules for reducing the IPI on less polluting cars?

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