IPVA Reduction in São Paulo

Rebeca Duran

Staff Writer
The Brazil Business

Updated

17 December 2013

IPVA is an everyday tax in Brazil, being charged for all individuals that own vehicles in the country. In São Paulo, this tax has undergone reductions, and this article explains which reductions and for whom.

In Brazil, there’s a tax name Imposto sobre a Propriedade de Veículos Automotores, usually known as IPVA, that is basically a value charged over the ownership of any ground vehicle. From the total amount collected for each vehicle with IPVA, 50% is allocated to the state government, while the other 50% is allocated to the municipality where the vehicle was purchased.

This means that, IPVA is a State tax, levied annually in January. The IPVA’s rate is determined by each state government, based on their respective criteria. The tax is calculated based on the market value of the vehicle varying between 1% and 6% rate.

Tax Reduction in São Paulo

For 2014, according to a study performed by Fipe (Fundação Instituto de Pesquisas Esconômicas) and publicized by the Treasury Secretariat, the IPVA will be reduced by 5.16% - for all vehicle owners of the State of São Paulo.

The study was based on the market values on September 2013 for over 10,795 different automobiles brands, models, and versions, and informed that the value of the tax will be reduced by 5.43% in comparison to the 2013’s IPVA. For owners of other vehicles the reduction will be:

Motorcycles and the like: 5.08%

• Trucks: 4.66%.
• Vans and Furgan: 4.29%
• Bus and Micro-bus: 2.03%.

All in comparison to the tax values charged in 2013.

Gradual Reduction

The tax reduction isn’t a complete surprise because IPVA has been reducing since 2009. In September of 2012 and 2013, the value was 8.56% more cheapest than in the same period of 2010 and 2011, when Fipe estimated a decreased of 3.75% in the vehicle sales prices.

Reduction for Whom?

Fipe has also calculated the major and minor market values ​​of property taxes in 2014 in each category (Automobile, Van and Furgan, Truck, Bus and Micro-bus, and Motorcycle, and Similar ones) based on those recorded in September of 2013. It is important to remember that the tax is calculated based on the market value of each vehicle, which can be 4% for those using gasoline and biofuels, 3% for cars powered by ethanol, electricity, or gas, and 1.5% for trucks.

More Expensive IPVAs

1. 1081480 - I/FERRARI F12 BERLINETTA
2. 2231600 - I/M.BENZ G63AMG
3. 4166390 - SCANIA/MPOLO PARADISO DD
4. 3152420 - SCANIA/R 580 B6X4
5. 46220 - I/DUCATI D16RR.

Less Expensive IPVAs

1. 181990 - IMP/HERO PUCH
2. 1092990 - IMP/LANCIA
3. 2229990 - IMP/SUZUKI
4. 3414990 - IMP/KIA
5. 4094020 - VW/KOMBI LOTACAO.