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PEC 03/26, presented by Kim Kataguiri and approved in the Constitution and Justice Committee of the Chamber, proposes to limit the IPVA to 1% of the vehicle’s value and change the tax calculation base. Currently, the rates vary from 1% to 4%, depending on the state, and the charge uses the market value as a reference.
The IPVA may undergo a profound change if PEC 03/26, approved by the Constitution and Justice Committee of the Chamber of Deputies, advances in Congress. The proposal limits the charge to 1% of the vehicle’s value and changes the way the tax is calculated.
Presented by Deputy Kim Kataguiri, from Missão-SP, the proposal alters a state tax that currently has different rates across the country. Currently, the percentages vary from 1% to 4%, depending on the state.
PEC limits IPVA to 1% and changes the calculation base
The main change is in the charge ceiling. According to the PEC, the IPVA could not exceed 1% of the vehicle’s value, creating a national limit for a tax that currently depends on state rules.
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The text also changes the base used to calculate the tax. Currently, the market value of the automobile, linked to the Fipe table, serves as a reference to determine how much the owner should pay.
According to the proposal approved in the CCJ, the charge would start to consider only the weight of the vehicle. In practice, larger and heavier models would have a higher tax, regardless of price, year, or standard.
Rapporteur says analysis was only constitutional
Rapporteur Rodrigo de Castro, from União-MG, presented a favorable opinion. He stated that the CCJ evaluated only the constitutionality of the proposal, without discussing its fiscal impacts.
This analysis should be left to a special committee, which needs to be set up. It will be in this committee that the Chamber should examine the effects of the change on state revenue.
Kim Kataguiri stated that the proposal should not harm the governors’ coffers. He said he intends to present compensation measures in the special committee, citing the cut of super salaries and the review of tax benefits.
The deputy estimated that these measures could reach R$ 200 billion.
Critics point out risk of distortion
The change faces resistance. Opposing parliamentarians argue that calculating the IPVA solely by weight may cause injustices by ignoring the price, model, and year of the vehicle.
Helder Salomão, from PT-ES, criticized the proposal and stated that an old and heavy truck could pay more tax than a light Ferrari, made of carbon fiber.
For him, the rule could create distortion and favor owners of expensive but light vehicles.
The next step is the installation of the special committee. There is still no forecast for this to occur. If approved at this stage, the PEC will go to the plenary, where it will need a qualified majority in two rounds.
