Bolsonaro penalizes law raising to R$200,000 IPI exemption for PwD vehicles

President Jair Bolsonaro imposed sanctions on Bill 5,149 that extends the exemption from the IPI (Industrial Products Tax) for the acquisition of new cars by Persons with Disabilities (PcD), as well as professional drivers.

In addition, the new law raised the cap on benefits from R$140,000 to R$200,000, expanding the range of options for consumers who are able to request the discount.

According to the government, “the exemption is valid for professional drivers, people with severe or profound physical, visual, hearing and mental disabilities, and people with autism spectrum disorder.”

The bill was approved by the Senate on December 15, when the provision repealing the PIS/Pasep and Cofins exemption on the purchase of chemical and pharmaceutical products intended for health was excluded, as a way to offset the tax waiver arising from the IPI exemption on vehicle purchases.

Bolsonaro, in turn, objected to the section that expanded the exemption for unmanufactured accessories. As a result, only optional items and original accessories can benefit from the exemption.

The increase in the ceiling should offset the rise in new car prices in recent years, which has reduced the number of models available in this segment that need an engine up to 2,000 cc.