Portuguese 
Bill Under Review Since 2020 Proposes IPI Exemption for People Aged 60 and Older Purchasing New Vehicles Up to R$70,000 with Engines up to 2,000cc. According to the Version Approved by the Committee, the Benefit Could Only Be Used Once Every Five Consecutive Years.
Individuals aged 60 and over may gain the right to an IPI exemption on the purchase of a new car if a bill currently in the Chamber of Deputies is definitively approved. The proposal establishes criteria for price, engine size, and type of propulsion while limiting the benefit to one purchase every five years.
According to a report from ND Mais, the bill has been under consideration in the National Congress since 2020 and was presented by then-deputy Alexandre Frota from the PSDB-SP party. The most recent movement mentioned by the source occurred in 2021, when the text was approved by the Commission for the Defense of the Rights of the Elderly and is awaiting analysis by the Finance and Taxation Committee.
Currently, There Is No Vehicle Exemption Based Solely on Age
The proposed rule is not yet in effect.
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Currently, there is no tax exemption in Brazil for the purchase of automobiles granted solely based on the consumer being 60 years or older.
Existing benefits for vehicle acquisition extend to individuals with disabilities and those with autism spectrum disorders, according to current legislation.
The Bill Was Presented in 2020 by Alexandre Frota
The proposal started moving through the Chamber of Deputies in 2020.
The original text was presented by deputy Alexandre Frota from PSDB-SP and proposed a broader granting of benefits for seniors.
In its first version, the exemption could be used for the purchase of any nationally manufactured vehicle.
Committee Approved Substitute with Stricter Rules
During the review in the Commission for the Defense of the Rights of the Elderly, the text was modified.
The rapporteur, deputy Vilson da Fetaemg from PSB-MG, presented a substitute that established specific conditions for granting the exemption.
These rules began to limit both the value and the characteristics of eligible vehicles.
Benefit Would Be Targeted at Individuals Aged 60 and Older
The minimum age stipulated in the proposal is 60 years.
If the project progresses and is approved through all legislative stages, individuals in this age group could benefit from the IPI exemption when purchasing a new vehicle that meets the criteria defined in the text approved by the committee.
Car would have a maximum price of R$ 70,000
The amendment set a price limit for the automobile.
Under the rules approved by the committee, the vehicle would have to cost no more than R$ 70,000 (about US$13,200), taxes included.
Cars priced above this amount would be excluded from the benefits outlined in the proposal.
Engine must be up to 2,000 cc
Engine specifications were also included among the requirements.
The eligible vehicle must have an engine of up to 2,000 cc, according to the text approved by the Committee for the Defense of the Rights of the Elderly.
This criterion restricts the benefit to automobiles within this engine capacity range.
Vehicle must use renewable fuel, hybrid, or electric system
The proposal also sets requirements related to the type of propulsion.
According to the rules mentioned in the source, vehicles powered by renewable fuel, hybrid, or electric systems would be included.
Therefore, the exemption would not be automatically applied to any new car within the price cap.
Purchase with exemption could only occur every five years
The benefit would also have a frequency limit.
Purchasing a vehicle with an IPI exemption could be done only once every five years.
This rule would prevent the same person from repeatedly using the incentive in shorter intervals.
Proposal provides for IPI exemption
The tax covered by the project is the Tax on Industrialized Products, IPI.
This federal tax applies to vehicle manufacturing and is part of the price paid by consumers.
According to the source, the proposal does not provide for a general exemption from all taxes related to the purchase of the vehicle.
IPI can represent between 11% and 25% of the vehicle’s value
The tax burden varies depending on the vehicle.
According to the source, IPI can account for between 11% and 25% of the total vehicle price, depending on the category and characteristics of the model.
If the project is definitively approved, the removal of this tax could significantly reduce the final price for elderly consumers who meet the conditions.
Reporter linked benefit to elderly mobility
Vilson da Fetaemg supported the measure during the deliberation.
According to the rapporteur, the proposal could facilitate the movement of older individuals, including for health treatments and daily life activities.
He presented the policy as a way to enhance mobility, inclusion, and autonomy.
Rapporteur Mentioned Health and Daily Life Mobility
When justifying the project, the congressman stated that the measure would provide older adults with a public policy tool.
In his assessment, improved access to individual transportation could assist seniors needing to travel for health treatments or to maintain a more independent lifestyle.
This assertion represents the rapporteur’s justification, not a currently proven effect of the measure.
Text Approved by Committee in 2021
The most recent stage mentioned by the source occurred in 2021.
That year, the Committee for the Defense of the Rights of the Elderly approved the substitute with criteria regarding value, motorization, fuel type, and a five-year interval between purchases.
This approval does not mean that the project has become law.
Project Awaits Rapporteur in the Finance and Taxation Committee
After the approval in 2021, the proposal did not complete its legislative process.
According to the source, the project is awaiting the designation of a rapporteur in the Finance and Taxation Committee (CFT), a necessary step for the analysis to continue within the Chamber.
Until this occurs, the text remains stalled at its current stage.
Proposal Still Depends on Congress and Possible Presidential Sanction
The exemption will only take effect if the project completes the entire legislative process.
This requires approval at the necessary stages of the National Congress and, ultimately, possible presidential sanction.
Until this happens, the current rules for purchasing vehicles remain unchanged.
Seniors Cannot Yet Use the Benefit Proposed in the Project
People aged 60 or older cannot currently purchase a new car with this exemption solely based on their age.
The project is still in progress and, according to the version approved in committee, it would limit the benefit to cars costing up to R$70,000 (about US$13,200), with an engine capacity of up to 2,000 cc and propulsion compliant with regulations, allowing a purchase every five years.
In your opinion, should an IPI exemption for individuals aged 60 and over be approved with these price and motorization limits, or should the benefit follow other criteria? Share your thoughts in the comments.
