Brazil raises import tax on solar panels and electric vehicles to up to 35% by 2026

The Brazilian federal government is continuing the gradual reinstatement of import taxes on electric, hybrid, and photovoltaic solar panels, with rates set to reach 35% by July 2026.

Since 2015, imports of electric and hybrid vehicles have been exempt from, or subject to reduced, tariffs to encourage the adoption of clean technologies.

However, starting in January 2024, the government began gradually reintroducing import taxes:

Hybrid and plug-in hybrid vehicles:
Rates vary, but they will also rise to as much as 35% by 2026.

There are declining duty-free import quotas in place through 2027 to allow the market to adapt. The revenue collected will fund the Mover Program (Green Mobility and Innovation), which provides incentives for the domestic production of sustainable vehicles.

The Brazilian Photovoltaic Solar Energy Association (Absolar) criticized the change, warning of higher solar energy costs, project cancellations (more than 25 GW at risk, involving R$97 billion in investments), and job losses. Meanwhile, entities such as Abinee support the measure, arguing that it protects the domestic industry from foreign subsidies.

Source: Portal VV8