Bill 5308/20 exempts imports and outputs of electric or hybrid vehicles from the Tax on Industrialized Products (IPI). The text also reduces the PIS / Pasep and Cofins tax rates on imports and on gross sales revenue in the domestic market of these vehicles to zero.

The proposal is by deputy Luiz Nishimori (PL-PR) and is being processed in the Chamber of Deputies. With the measure, he intends to encourage the demand for electric cars in Brazil with more affordable prices, opening space for investments in the sector and generating jobs and income.

"Compared to cars powered solely by combustion engines, electric and hybrid cars are more efficient, quieter and less polluting," says Nishimor. "Despite these benefits, the market is still restricted in the country. The increase in supply occurs mainly among luxury brands - inaccessible to most Brazilians."