According to Minas Gerais state governor Romeu Zema, São Paulo governor Tarcisio de Freitas vetoed the IPVA exemption for electric vehicles in the region, the country’s largest ethanol producer.
For the head of the Bandeirantes palace, the idea is that vehicles that run exclusively on hydrogen or hybrids with electric and internal combustion engines should be exempted if they have the option or use only ethanol.
In practice, the move benefits manufacturers like Toyota, with plants in Sorocaba and Indianautub that make the Corolla Cross and Corolla models respectively, and the automaker has to offer the Yaris Cross EM only as a flexible hybrid in the region.
Moreover, Great Wall will also soon benefit from its flexible Haval H6, and Volkswagen still intends to produce a flexible hybrid in Anchieta as well as in Taubate.
GM, for its part, will not invest in hybrids, while Hyundai has not yet announced its intentions in this regard.
In Tarsizio’s proposal, the price of a flex hybrid vehicle cannot exceed BRL 250,000, and the benefit will only be 100% if the vehicle is registered in the city of São Paulo, where there is already an IPVA exemption for electric and hybrid vehicles.
It should be remembered that the IPVA is a regional tax and 50% belongs to the state and 50% to the municipality, and in the case of São Paulo, the changes in Bill 1510/2023 will apply between 2024 and 2028.
For Tarcísio, the goal is to encourage the use of ethanol as an alternative to gasoline, as it is renewable and cleaner than petroleum derivatives, but fused with electricity.
According to the Brazilian Association of Electric Vehicles (ABVE), the measure is a “disappointing sign” for a sector that wants to invest in sustainable vehicles.
ABVE said in a statement: “It does not seem reasonable for these authorities to express disbelief in the most pressing trend in the global automotive sector, and we hope that these positions will be reconsidered.”
(Source: Capital Letter)
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