Tax Reform: Approval of the PEC brings significant changes in IPVA and IPTU charges
The two amendments are included in a section dealing with the collection of taxes on income and wealth, although they are not the main focus of the reform.
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Approved by the Chamber of Deputies in the early hours of this Friday (7), the base text of the tax reform proposes changes in the collection of IPVA (Tax on Motor Vehicle Property) and IPTU (Tax on Urban Land and Property), among other measures. These changes are inserted in a section that addresses the collection of taxes on income and wealth, although they are not the main focus of the reform, which is centered on consumption.
IPVA
After the approval of the PEC, the requirement of IPVA payment for owners of jets, yachts and speedboats, which, until then, were not taxed. In addition, a project approved by the Chamber establishes that the tax may be progressive, taking into account the environmental impact of the vehicle.
This implies that electric vehicles, recognized as less harmful to the environment, will have a percentage reduction in the tax. In addition, the text points out that this change is clear with the current environmental proposals defended globally and goes in the same direction of the carbon emissions reduction agreements of which Brazil is part as a signatory.
The project also foresees the possibility of considering the value of the vehicle for tax progressivity. The intention is to increase the rate for those with greater purchasing power. The proposal seeks to implement a differential to encourage the acquisition of more autonomous vehicles and increase the tax burden on more expensive models. The objective, according to the text, is to eliminate an unjustified benefit related to assets that are generally owned by people with greater contributory capacity.
It was established that the IPVA charge will be applied to water and air vehicles. Currently, the Federal Supreme Court (STF) has interpreted that the tax should be levied only on land motor vehicles. Therefore, it will be necessary to reform the Federal Constitution to include the inclusion of these types of properties. Deputy Aguinaldo Ribeiro (PP-PB), rapporteur for the proposal, emphasizes that the intention is not to overload aircraft and passenger transport aircraft, as well as boats intended for industrial, artisanal, scientific or subsistence fishing. In addition, oil platforms will not be maintained for a fee.
IPTU
With regard to IPTU, an update of the tax calculation base is foreseen by means of a municipal decree. The project aims to meet a request from the National Confederation of Municipalities (CMN) and allows city halls to update the tax calculation basis through general criteria defined in municipal law.
Thus, it will not be necessary for the IPTU increase to pass the approval of the Legislative Power. The Executive will use this prerogative to impose increases in this tax with greater ease and frequency, which will result in a heavier burden for property owners, especially those with appreciation potential. IPTU is considered one of the most controversial taxes of the reform, as it is currently calculated based on an amount lower than the usual cost of a property.
