Government maintains tariff increase for electric cars and renews zero quota

The Executive Management Committee (Gecex) of the Chamber of Foreign Commerce (Camex) maintained the schedule for increasing import tariffs for electric and hybrid vehicles. The body, however, approved the recreation of an import quota with a zero rate for dismantled and semi-disassembled models.

The measure will be valid for six months from July 1st of next year and includes a limit of US$463 million in vehicles under the CKD and SKD regimes, which allow the final assembly of cars in Brazil.

Rates reach 35%

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Government maintains tariff increase for electric cars and renews zero quota

According to Gecex, semi-disassembled electrified vehicles (SKD) will have the import tariff increased to 35% from July. Disassembled models (CKD) will continue with a rate of 14% until the end of 2026, also increasing to 35% in January 2027.

The additional quota with zero tax will have the same value as the mechanism that was in force until January of this year. Above the authorized limit, the rates set out in the official schedule continue to apply.

The decision does not include fully assembled electrified vehicles, which remain subject to established taxation rules.

Government defends transition

In a statement, Gecex stated that the measure seeks to align commercial policy with initiatives aimed at renewing the fleet, encouraging innovation and reducing carbon emissions in the automotive sector.

The body highlighted that electrified vehicles contribute to the decarbonization of the Brazilian automotive chain and the adoption of more sustainable technologies.

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Industry criticizes decision

The National Association of Motor Vehicle Manufacturers (Anfavea) reacted negatively to the measure and stated that it viewed the decision with “great concern”.

The entity declared that maintaining import quotas at zero rates could harm manufacturers installed in the country, workers and national auto parts companies.

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According to the association, demonstrations by unions, business entities and industry representatives highlighted negative impacts on local production.

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