Anfavea proposes flat tax for vehicles

Anfavea proposes flat tax for vehicles

A proposal drafted by the National Association of Motor Vehicle Manufacturers (Anfavea) promises to tinker with the Brazilian automotive market. In an interview with Folha de S. Paulo, Luiz Moan, president of the organization, confirmed that automakers want to change the property tax for the vehicle, replacing the Property Tax Motor Vehicle (property taxes) for a Tax on Motor Vehicles (ICVA).

With the new format, all owners of vehicles (cars and light trucks) would pay the same annual amount, without any distinction on the value of the model or year of manufacture to your market. Moan mentioned that other countries, like England, have adopted similar mode of taxation.

Once such a measure into a real, would, according to Anfavea, a stimulus for fleet renewal since the older models would be disadvantageous relationship between its market price and amount paid at ICVA. Cars manufactured more than 20 years follow tax-exempt.

Following this line or not, the federal government, according to information obtained by the manufacturers themselves, in 2017 program for an overhaul of the calculation of this type of tax.

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