Brazil Chamber Committee Clears Constitutional Amendment to Overhaul Vehicle Tax

The Constitution and Justice Committee (CCJ) of Brazil’s Chamber of Deputies approved the admissibility of Constitutional Amendment (PEC) 3/2026, which would cap the annual vehicle tax (IPVA) at 1% of a car’s sale price and change the calculation basis from market value to vehicle weight. The proposal, authored by Deputy Kim Kataguiri, could cut the tax by up to 75% in states where current rates reach 4% and would allow states to grant discounts for less‑polluting vehicles.

During the vote, members of the Workers’ Party (PT) voted against the amendment’s admissibility, though the committee’s assessment focused only on constitutional validity, not the policy merits. The proposal now moves to a special commission for merit review, then must pass two voting rounds in the Chamber and a similar process in the Senate before it could become law. Analysts note that the change could significantly affect state revenues and vehicle owners nationwide.