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Restriction to Only One PCD Car Per Person Could Cut Billions in Public Spending, But Threatens the Automotive Market and Raises Criticism of Exclusion.
Brazil has built, over the last two decades, one of the largest tax incentive programs for people with disabilities (PCD) in the automotive sector. The IPI discount and ICMS exemption have become vital not only to ensure accessibility but also to drive the entry-level vehicle market. In 2024 alone, the exemptions granted totaled over R$ 6 billion in tax renunciation, according to estimates from the Federal Revenue. Now, this benefit may be rewritten. In Brasília, there is discussion about limiting purchases to only one car per person, a rule that would radically change the current logic of the program.
How Car Purchases with PCD Exemption Work Today
Currently, a person with a disability can apply for an IPI exemption to purchase a car up to the ceiling established by law. The last update set the maximum value at around R$ 120 thousand, after years of pressure from automakers and associations.
The rule still allows the beneficiary to buy a new vehicle with exemption every three years. This shorter interval was seen as an achievement since for many years the law only allowed exchanges every five.
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In practice, every three years, thousands of PCD cars enter the used market, with competitive prices and low mileage, strengthening a parallel market that attracts even those who do not fit into the public policy.
The Government’s Argument: Curbing Fraud and Adjusting Accounts
The trigger for the discussion came from reports by the Federal Court of Accounts (TCU), which pointed out possible distortions and misuse of the benefit.
Cases of families acquiring multiple vehicles in the name of a single beneficiary became the target of investigations. The proposed study aims to grant the exemption only once per person, without the possibility of repetition.
The government’s economic team estimates that this change could reduce fiscal renunciations by up to R$ 2 billion per year, a significant number at a time of adjustment in public accounts and a search for increased revenue with the Tax Reform.
The Direct Impact on the Automotive Sector
If for the government the measure represents savings, for automakers and dealerships the scenario is worrying. Estimates from the Anfavea (National Association of Motor Vehicle Manufacturers) show that about 30% of sales of compact cars and entry-level sedans in Brazil come from the PCD segment. The limitation of a single purchase would drastically reduce this continuous flow of consumers.
Companies warn that the market for popular cars, already pressured by falling income and rising interest rates, could suffer an even greater contraction, impacting production and employment.
The Risk of Shortage in the Used Car Market
Another direct consequence would be on the used cars market. Today, every three-year cycle sees thousands of PCD vehicles resold, feeding the used car sector with well-maintained cars at more affordable prices. The new rule, if approved, would break this cycle.
Industry experts predict that the prices of used cars may rise, especially in the range below R$ 70 thousand, which is precisely the most sought after by the middle class that cannot afford a brand new vehicle. The average consumer, already facing one of the highest vehicle costs in the world relative to income, could be further penalized.
Entities related to people with disabilities see the measure as a setback. For them, purchasing an adapted car is not a luxury but a necessity. Often, the vehicle needs to be renewed for accessibility issues, adaptation of equipment, and even user safety.
“It is not just about buying a cheap car, but ensuring the mobility of those who depend on costly and specific adaptations. Limiting the exemption to only once is excluding thousands of people,” stated the Brazilian Federation of Associations of People with Disabilities in a note.
What Could Happen in 2026
The discussion is in the corridors of Congress, but faces strong resistance. Parliament members from the so-called “automotive bloc” promise to work against the proposal, arguing that it could lead to a sales crisis in the sector and unemployment in dealerships. Meanwhile, the economic team argues that it is impossible to maintain such an expensive program without revisions.
If it moves forward, 2026 could mark a watershed: on one side, the relief of public accounts; on the other, the end of a vehicle renewal cycle that helped sustain the automotive market for years. The dispute promises to be intense, and the consumer—especially the PCD audience—could end up at the center of this battle.
In the end, the question that looms is simple: Will the exemption policy for PCD cars continue to be a pillar of the industry or will it be dismantled in the name of fiscal adjustment? The answer could define not only the future of thousands of drivers with disabilities but also the fate of a significant share of the Brazilian automotive industry.
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