Rio Grande do Sul legislature overturns veto on vehicle licensing fee

The Legislative Assembly of Rio Grande do Sul has voted to overturn Governor Eduardo Leite’s veto on a bill that abolishes the vehicle licensing fee (CRLV). The measure passed with 38 votes in favor and none against.

The bill, originally proposed by Deputy Rodrigo Lorenzoni, seeks to end the R$ 114 charge for the issuance of the digital vehicle registration certificate. Proponents argue that since the document has been digital since 2019, the fee no longer covers actual administrative costs.

Governor Leite and the state government have warned that the decision is “equivocada” (mistaken) and will impact public security. The government estimates that the fee generates approximately R$ 750 million annually, which is used to fund police equipment, surveillance systems, vehicles, and weaponry. The administration also noted that the loss of revenue could trigger fiscal responsibility laws regarding revenue renunciation.

The matter now moves to the Executive branch for promulgation. If not signed within 48 hours, the responsibility will fall to the President of the Assembly, Sergio Peres.