Brazil’s vehicle import tax reduction regulated

The Brazilian Chamber of Foreign Trade (Camex) published this Wednesday (2) in the Brazilian Official Federal Gazette (DOU) a decision to regulate the reduction of the Import Tax on vehicles in the Brazilian market. It will be valid for a period of up to two years.

According to the new regulation, a tax reduction could be granted to cars and light commercial vehicles, with up to 1,500 kg of load capacity, completely knocked-down (CKD) or semi knocked-down (SKD), without equivalent national production. The Import Tax rate reduction will only be applied to imports of new vehicles.

The resolution states the import tax rate for vehicles will be 18% for SKD and 16% for CKD.

The benefit will consider the automotive product segment of the claim submitted, the results of the public consultation, the assembly level (CKD or SKD), and the alignment with the current automotive policy.

Those interested in requesting the concession of the tax reduction should forward the requests to the Secretariat for the Development of Industry, Commerce, Services, and Innovation of the Ministry of Economy, via the Electronic Information System (SEI), until December 31, 2022. The term may be extended by a decision of the Camex Executive Management Committee.

Source: ANBA – Brazil-Arab News Agency

To read the full original article, go to: https://anba.com.br/en/brazils-vehicle-import-tax-reduction-regulated/

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