The Brazilian government said on Friday it will gradually reestablish import taxes on electric and hybrid vehicles, as well as on dozens of chemical products.
The tax rate for imports of hybrid and plug-in vehicles will be set at 12% in January 2024, rising gradually to 35% in July 2026. For electric cars, the rate will start at 10% in 2024, also reaching 35% by 2026, according to a statement from the country’s industry ministry.
Chemical products will see their import tax rise by between four-tenths of a percentage point and 1.4 percentage points. The government did not specify which products would be covered.
“The decision was taken to reverse the negative impacts caused to the national industry, due to the significant increase in imports and the strong variation in prices,” the ministry said.
The government of former President Jair Bolsonaro had removed import taxes on some items to mitigate the impact of supply shocks caused by the coronavirus pandemic on Latin America’s largest economy.
