BLUF (Bottom Line Up Front): The Federal Government has made official the rules for the new Selective Tax on cars. The tax will come into effect on February 2nd of next year, and should not lead to a general increase in the final prices of vehicles. In fact, the measure helps adapt the automotive industry to tax reform by gradually replacing the IPI with the Selective Tax, applied to products harmful to health and the environment.
The current calculation basis for the so-called Green IPI adopts a starting rate of 6.3% for passenger cars; With the change, a conversion multiplier of 1.21 becomes part of the final stage of the calculation to compensate for the end of double taxation of embedded taxes, keeping the real burden stable, although the nominal rate rises to 7.623%.
Imported cars will also have an adjustment factor of 1.17 for tax equality. The decision establishes that technical criteria for sustainability, motorization, vehicle safety and energy efficiency will continue to define the individual taxation of each model. Maintaining current guidelines guarantees neutrality to the average tax burden in 2027, pushing deeper tax changes to legislative debates scheduled for 2028.
The 100% electric and flex hybrid models continue to have discounts of up to 2 percentage points on the base rate. On the other hand, cars powered exclusively by gasoline and diesel will suffer nominal increases of 6.5 and 12 percentage points, respectively.
Entry cars from the Sustainable Car program, trucks with GRP from 3.5 tons and purchases intended for taxi drivers and the PCD public remain at zero rate. Now, the Executive must forward to the National Congress, by May 2027, the definitive project with the simplified rates that will come into effect from 2028.
Take the opportunity to check out our article that explains how to find out how much the IPVA of a used car costs!
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