Government announces reduction of up to 10.96% in the price of new cars

Well Paraná Writing

| 05/25/2023 at 9:50 pm

The federal government announced this Thursday (25) the reduction of taxes with the objective of reducing the final value of new cars in Brazil. The measure will be possible with the reduction of the rates of the Tax on Industrialized Products (IPI) and of the Social Integration Program and Contribution for the Financing of Social Security (PIS/Cofins) for the automotive industry.

The discounts that will affect the value of the vehicles will range from 1.5% to 10.96%, according to price, energy efficiency and industrial density criteria in the country. The measure applies to cars of up to R$ 120,000.

However, there is still no definition of what the rate reduction level will be and how the government will compensate the benefit. The measure is under discussion at the Ministry of Finance, which will have 15 days to present the parameters that will be used in issuing a decree (to reduce the IPI tax) and a provisional measure (to reduce PIS/Confins) that will be forwarded for approval by the National Congress.

The president of the National Association of Automotive Vehicle Manufacturers (Anfavea), Márcio Lima Leite, stated that the reduction of taxes in the sector, announced by the federal government, is producing immediate effects in the automotive production chain. He said that automakers are already changing plans to be able to produce more.