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Electric and hybrid cars will get a 50% discount on IPVA in São Paulo from 2023

Written by Bruno Teles
Published 23/09/2022 às 23:55
Electric and hybrid cars
Electric and hybrid cars (Photo/disclosure)

Next year, electric and hybrid car owners will be able to collect only 50% of the IPVA, where the tax will be converted into IPTU credit.

Electric and hybrid cars in São Paulo will get a big discount on the IPVA (Tax on Ownership of Motor Vehicles). This week, an action by Mayor Ricardo Nunes (MDB-SP) signed an extension of the incentive for electrified vehicles. Thus, the measure will be for models powered by a hydrogen cell, which are still far from Brazilian streets, as they are still in the development phase.

Although the reality is still a little distant, the decision of the mayor of São Paulo will waive the collection of 50% of the amount paid in the IPVA in the city. Therefore, owners of electric and hybrid cars will only pay half of the tax, which is directed to the coffers of the state of São Paulo. It is even important to remember that in the state, owners of electric and hybrid cars have had a discount on the IPVA since 2014. However, previously, the rebate was only valid for vehicles priced up to R$150. In this way, the existing ceiling does not cover the majority of electric cars for sale in the country during the period in which the discount is granted.

On the other hand, it is important to emphasize that there was no systematization regarding the return of the fee. Therefore, in 2021, the São Paulo City Hall sanctioned Law 17.563, which allows electrified car drivers to turn part of the tax amount into a credit for paying IPTU. During the opening of the Congress and Expo Fenabrave (National Federation of Automotive Vehicle Distribution), the mayor of São Paulo opened that the city hall is giving up its IPVA quota for electric and hybrid cars. In this way, anyone who purchases electric cars in the city of São Paulo, and license plates there, will be entitled to a discount on the part that would be destined to the municipality.

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Electric and hybrid cars also got a discount on IPTU

In addition to the decision involving the IPVA, Nunes also announced, earlier this month, that all electric and hybrid cars will have a discount on the IPTU. In this way, the rebate allows that part of the value of the IPVA can be converted into credit for the payment of the IPTU. Therefore, the discount per unit can reach R$3.292,21.

Incentive for electric cars is a measure to clean the city

During the 30th Congress and Expofenabrave that took place at the São Paulo Expo during the 21st and 22nd of September, several speeches were made by the mayor of São Paulo. During his speech, Nunes pointed out that this tax incentive belongs to a series of measures that aim to provide a cleaner and more ecological city. To this end, he also announced that he intends to replace 30% of the fleet of diesel buses with electric vehicles, starting in 2024. In all, it is expected that 2,6 models with zero emission of gases pollutants.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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