Brazil vehicle tax reform actions

In July 2026 the Brazilian Chamber of Deputies approved a constitutional amendment to overhaul the Motor Vehicle Property Tax (IPVA). The proposal, authored by Deputy Kim Kataguiri, would replace the market‑value basis with vehicle weight, cap the tax at 1 % of the sale price and allow state discounts for low‑emission cars. If enacted, lighter vehicles would pay less while heavier SUVs and trucks could see higher charges, and state revenues would likely fall.

Within days, the state of Acre enacted a temporary measure exempting new cars from IPVA for their first year to stimulate sales during a regional trade fair. At the federal level, legislators introduced a separate bill (PL 2937/2020) to eliminate the IPI tax on new‑car purchases for buyers aged 60 and over, pending approval. Both initiatives reflect a broader push to adjust vehicle‑related taxes, targeting specific market segments and demographic groups while balancing revenue considerations.