Find out who are the lucky ones who will be EXEMPT from IPVA from this year

IPVA is the annual tax charged on the ownership of motor vehicles. The value varies depending on the value of the vehicle and the state tax rate.

In a scenario where the economy and the cost of living challenge Brazilians daily, recent news brings a breath of relief to owners of old vehicles.

The Proposed Amendment to the Constitution (PEC) 72/2023 promises to exempt cars with more than 20 years of manufacture from Tax on Motor Vehicle Ownership (IPVA). This initiative was proposed by senator Cleitinho (Republicanos-MG).

Find out who can be exempt from IPVA – Credit: @jeanedeoliveirafotografia / pronatec.pro.br

After all, which vehicles will be exempt from IPVA? check out

First of all, it is important to make it clear that the PEC has already been approved by the Constitution and Justice Commission (CCJ).

It aims to alleviate the tax burden on citizens and recognize the reality of the aging vehicle fleet in Brazil.

A measure that undoubtedly hints at the possibility of savings for many, while raising debates about its environmental and economic implications.

Is the proposal already valid?

This measure reflects the recognition of the aging of the national fleet, exacerbated by the COVID-19 pandemic, which has increased the prices of new and used vehicles, making it difficult for Brazilians to renew their fleet.

While the proposal seeks to alleviate the tax burden on owners of old vehicles, it is argued that it could counteract efforts to renew vehicles and reduce pollution.

However, the PEC still needs to be analyzed by the plenary, and if approved, it could mean significant savings for many Brazilians, in line with the principles of fiscal justice and economic capacity.

Understand Motor Vehicle Ownership Tax

IPVA is mandatory for all owners of motor vehicles that circulate in Brazilian territory.

This fee is the responsibility of state governments and its main objective is to raise funds for investments in infrastructure, public security and education.

Calculation

The IPVA value is calculated according to three main factors:

Market value of the vehicle: Based on the Fipe table, which defines the market value of the vehicle in the year prior to paying the tax. State rate: Each state defines the rate, which can vary between 1% and 4% of the vehicle’s market value .Discount factors: Some states offer discounts for paying in a single installment or for vehicles with specific characteristics, such as cars powered by ecological fuels.

Payment

Payment can be made in a single installment or in up to 5 installments, generally due in the first quarter of the year.

Payment can be made online, at partner bank branches or at Detrans counters.

Fine and interest

Delay in paying the IPVA can generate fines and interest, in addition to the debt being included in the State’s Active Debt, which can lead to the seizure of assets.

It is important to keep your IPVA payment up to date to avoid inconvenience and keep your vehicle in good standing.

Debt consultation and installments

IPVA debts can be consulted on your state’s Detran website. It is also possible to pay the tax in arrears in installments, by paying the down payment and the remaining installments plus interest.

Exceptions

Vehicles that are more than 20 years old, such as antique and classic cars, may be exempt in some states.

It is important to check your state’s laws to confirm whether your vehicle qualifies for any exemptions.

Post a Comment

Previous Post Next Post