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End of IPVA for motorcycles: law determines the tax exemption for some models

On April 27, the Economic Affairs Committee (CAE) of the Federal Senate approved a project that seeks to exempt the rate of the Tax on Motor Vehicle Ownership (IPVA) of motorcycles that have low displacement. This action aims to generate opportunities for the low-income population to have a vehicle. Keep reading!

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IPVA exemption for some motorcycles

The measure of zeroing the IPVA for motorcycles was authored by Senator Chico Rodrigues (União-RR). According to the parliamentarian himself, the expectation is that the proposal will benefit the poorest drivers, belonging to classes C, D and E, the public that most consumes this type of means of transportation.

“Most owners are people who use the motorcycle as a work tool”, emphasizes the senator. “The approximately R$ 300 saved in the IPVA already helps in the family budget of these workers”, he adds.

Which models had the tax zeroed?

The project, which had been approved by the commission at the end of last year, contemplated motorcycles of up to 150 cc. However, the text of the proposal came back for closer scrutiny as it received two amendments during the voting process. Both will undergo approval.

In detail, these two amendments to the project propose that the exemption from the IPVA tax rate for motorcycles also cover models up to 170 cylinders. The rapporteur, Mecias de Jesus (Republicanos-RR), accepted the requests made. The parliamentarian also pointed out that, although there is a resolution on the reduction of the tax, it should not override the law of each state.

“Although the existence of a resolution, this does not replace the law of each State in the establishment of rates. Furthermore, setting it to zero will only work as a baseline for the incidence, not being mandatory for the entities subnational entities, we understand that its fixation by the Federal Senate stimulates its unification and adoption by the other entities”, Mecias said.

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