Brazil to raise import tax on electric and hybrid vehicles

The Executive Management Committee of the Foreign Trade Chamber (Gecex-Camex) has decided to advance the schedule for increasing the import tax on electric and hybrid vehicles. The 35% rate will now take effect in January 2027 — a year and a half earlier than previously planned, which was July 2028.

The measure partially meets the request of the National Association of Motor Vehicle Manufacturers (Anfavea), which has been pressuring the government to adopt policies that protect domestic industry in light of the growing influx of electrified vehicle imports.

At the same time, Gecex approved the application of additional import quotas with a zero tax rate for completely knocked down (CKD) and semi-knocked down (SKD) vehicles, valid for a period of six months. The total volume authorized is US$463 million. Other requests submitted by automakers and industry associations were not granted.

According to the government, the decision aims to align tariff policy with the investments expected in the Brazilian automotive sector, encouraging the adoption of new technologies and strengthening the local production chain.

The change is also intended to accelerate the localization of electrified vehicle production at a time when several automakers are announcing expansion plans in the country.

Source: AutoRanking

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