Senate approves IPI exemption for taxi drivers and people with disabilities

Amendments proposed by the House were rejected by senators

Published in 15/12/2021 - 20:20 By Marcelo Brandão – Repórter da Agência Brasil* - Brasília

The Senate rejected changes by the Chamber of Deputies in the bill that extends for five years, until December 31, 2026, the exemption from the Tax on Industrialized Products (IPI) on the acquisition of new cars by people with disabilities and hearing impaired people. Taxi drivers and taxi driver cooperatives are also covered by the exemption. The bill was approved by the Chamber earlier this month, returned to the Senate, Home of origin, and now goes to presidential approval.

Under current 1995 legislation, the tax benefit would end in December of this year, but the bill (PL) extends the IPI exemption until the end of 2026. During the analysis of the text in the Chamber, deputies included an excerpt that revoked the exemption from the Social Integration Program (PIS) and the Contribution to Social Security Financing (Cofins) in the purchase of chemical and pharmaceutical products for health, as a way to offset the tax waiver caused by the IPI exemption on the purchase of cars, but the senators rejected the amendment.

During the highlight vote, the bill's rapporteur, senator Romário (PL-RJ), said that the government should come to an understanding with the 2022 Budget General Rapporteur, Deputy Hugo Leal (PSD-RJ), to find a source paying for the maintenance of the tax benefit guaranteed to the health sector. The change made by the deputies was also criticized by Izalci Lucas (PSDB-DF).

“The government will look for an alternative. We cannot accept taking money from health. There is the LOA [Annual Budget Law], which is not voted on. There is no problem in relation to the source in the project, this is an extension of an incentive that had existed since 1995, when the Fiscal Responsibility Law did not exist and, later, the funding source was identified”, said the toucan senator.

Exemption

Law 8989/1995 grants IPI exemption on the purchase of domestically manufactured passenger cars, equipped with an engine with a cylinder capacity not exceeding 2 thousand cubic centimeters (cm³) of at least four doors, powered by fuel of renewable origin, system reversible combustion or hybrid and electric.

The bill extends the exemption to the car's optional accessories, not covered by the 1995 law. The accessories included by the senators must be used to adapt the vehicle for use by people with disabilities.

The text raises from R$ 140 thousand to R$ 200 thousand the maximum price of the car (including taxes) that can be acquired with exemption from the IPI by the person with a disability.

*With information from the Senate Agency

Text translated using artificial intelligence.

Edition: Nádia Franco

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