New Rule for ICMS Exemption for PWD Cars Now Has Two Limits

A New Rule For The ICMS Exemption Allows PCD Cars To Have Two Ceilings. The Exemption, Which Was R$ 70 Thousand, Can Now Be R$ 100 Thousand, Depending On The State

Since the arrival of the pandemic in Brazil, the prices of new cars have risen for various reasons such as inflation, long waiting lists, component shortages, among others. All of this has accelerated the obsolescence process of the ceilings for ICMS exemption for the purchase of new models for people with disabilities. While the limit to obtain a discount on the Tax on Industrialized Products (IPI), a federal product, has already been updated from R$ 70 thousand to R$ 140 thousand, potentially rising to about R$ 200 thousand starting next year, the ICMS limit, being state-related, has remained outdated at R$ 70 thousand for PCD cars.

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ICMS Ceiling Will Increase For PCD Cars

Last Thursday (9), the National Council of Tax Policy (Confaz) announced an increase in the ICMS exemption from R$ 70 thousand to R$ 100 thousand. However, before going to buy that Fiat Pulse Drive Turbo 200 AT, it’s necessary to know the downside of the news.

The new rule for the ICMS exemption actually creates a way of having two ceilings, one that provides a partial subsidy and another for full exemption from the tax. The catch is in this excerpt that was released by Confaz:

“Considering the states’ difficulty in increasing their fiscal waivers, the ICMS exemption will only be applied to the amount of up to R$ 70 thousand.” It is worth noting that the ICMS is a tax charged individually by each of the 26 states of Brazil plus the Federal District.

Learn How The New Ceiling For PCD Cars Will Work

To explain better, only PCD cars invoiced within the R$ 70 thousand range will continue to receive the ICMS exemption. However, for those costing between R$ 70,001 and R$ 100 thousand, the consumer will have to pay the proportional tax on the excess amount, meaning that for a Pulse Turbo AT, which has been priced until the end of this week at R$ 98,900, the consumer will have to pay the proportional ICMS related to the excess of R$ 28,900.

After the approval from Confaz, the Ministry of Economy should disclose the decision in the Official Gazette of the Union (DOU), setting a timeline for the new exemption rule for PCD cars to come into effect. It is also important to emphasize that each state in the country will define whether or not to apply the new subsidy exemption policy.

PCD Cars Will Return To Having An Exemption Of R$ 140 Thousand

Check Out The Following 5 PCD Cars That Will Return To Having An Exemption Of R$ 140 Thousand:

• Toyota Corolla XEI 2.0 Flex 2022 – Price: R$132,390 – Specifications: 177 Horsepower, 21.4 kgfm Of Torque
• VW Nivus Highline 1.0 TSI 2021 – Price: R$112,950 – Specifications: 128 Horsepower And 20 kgfm Of Torque
• Jeep Renegade Limited 1.8 2021 – Price: R$ 129,490 – Specifications: 139 Horsepower And 19.2 kgfm Of Torque
• Chevrolet Tracker Premier 1.2 Turbo 2022 – Price: R$133,290 – Specifications: 133 Horsepower And 21.4 kgfm Of Torque
• Nissan Kicks Exclusive 1.6 2022 – Price: R$ 121,290 – Specifications: 114 Horsepower 15.5 kgfm Of Torque