English 
Spanish 
2 min read
0 comments
Proposed amendment aims to ease the burden on owners of old vehicles and promises to standardize IPVA exemption throughout Brazil, generating debate on social justice in the tax system
A new proposed amendment to the Constitution is shaking up the automotive sector in Brazil. THE PEC 72 / 23 seeks to exempt from Motor Vehicle Ownership Tax (IPVA) all the carros passenger cars, pickup trucks and mixed vehicles with 20 years or more in manufacturing . The proposal aims to ease the burden on the owners' pockets old cars , especially those with lower purchasing power, according to brasilperfil.
The author of the proposal, o Senator Cleitinho (Republicans-MG), highlights the importance of reducing the tax burden for low-income people. Approved by the Senate, the PEC will now be analyzed in the Câmara dos Deputados . "This IPVA weighs heavily on the bills of families who have older cars and cannot afford to replace them.”, argues the senator.
Cars affected by the new IPVA exemption proposal
The proposal does not cover all vehicles, focusing on passenger cars, vans and mixed vehicles, but excluding minibuses, buses, trailers and semi-trailers. Thus, the PEC will benefit especially from private vintage cars , bringing an incident for owners in states such as Minas Gerais and Pernambuco, where the authorization of IPVA It is not yet common.
- Collection of abandoned vintage cars on US farm includes Cadillacs and Lincolns, all covered in dust and debris
- China and Stellantis announce mega €4 billion investment in battery factory in Spain
- The Mystery of the Lost Bugatti: A Car Valued at $100 Million That Has Never Been Found
- New Kombi, but from Fiat? The company registers the Fiat Doblò in Brazil and causes anxiety among fans of the utility vehicle! Will it return?
If approved by the Câmara dos Deputados , this authorization will be a milestone, creating a uniform rule that will end the variation of rules between states. For the senator, it is an important step towards social justice .
How does the exemption work for other vehicles?
With the recent tax reform , the application of IPVA was extended to air, water and land vehicles. Currently, there are already immunities for agricultural aircraft, fishing boats and tractors, and the exemption from IPVA for carros old entry as another differentiated taxation measure.
What are the next steps for approval of the PEC?
A PEC 72 / 23 now needs to be proven and approved by Constitution, Justice and Citizenship Commission (CCJC) of the Chamber of Deputies and go through a special committee before being voted on in two rounds in the plenary. If approved, it will be promulgated by the president of the National Congress, coming into force.
IPVA exemption for old cars: a step towards tax justice?
The proposal for exemption from IPVA for cars with mais de 20 anos promises to be a relief for many families, as well as rekindling the debate on social justice and tax balance in Brazil. If approved by the Câmara dos Deputados , the measure could pave the way for new revisions to the tax system, considering the socioeconomic needs of Brazilians.
