The Senate approved this Wednesday (6th) a draft resolution that allows zeroing the IPVA (Automotive Vehicle Property Tax) rates for motorcycles up to 170 cc.
The proposal was symbolically approved by the senators. As it is a draft Senate resolution, it does not need to be voted on by the Chamber of Deputies or sanctioned by President Jair Bolsonaro (PL). Go straight to enactment.
The draft resolution was prepared by Senator Chico Rodrigues (União Brasil-RR) and intends to establish a floor for the IPVA for these vehicles. As it is up to the states to determine their rates, the approved measure is not mandatory for these federated entities and works more as an indication.
“Once approved by the Senate, the rate will fall to the states and the Federal District, which will have as a floor the zero rate of the pre-fixed terms”, said the author of the proposal.
The initial proposal foresaw a rate of 0% for all two-wheel vehicles up to 150 cc. However, the rapporteur of the proposal, Senator Mecias de Jesus (Republicans-RR), accepted two amendments proposed by parliamentarians for the special rate to be extended to motorcycles of up to 170 cc.
In justifying the project, Senator Chico Rodrigues argues that motorcycles are important because they are used in areas of difficult access, such as rural regions or regions with lower purchasing power.
In addition, he mentions that these vehicles are used mainly by low-income people. The text states that 48% of motorcycle buyers are in classes D and E, which correspond to about 35% of the Brazilian population. The author also adds that low-capacity motorcycles correspond to 80% of the two-wheel vehicles registered between 2015 and 2020.
Some senators criticized the proposal. Senator Oriovisto Guimarães (Podemos-PR), said he would vote in favor because he does not see problems in the draft resolution, but added that it will be “innocuous”.
“I have great difficulty in understanding the effect of this. We set the minimum, but the states are the ones who define the rates,” he said.
“Honestly, I think the consequence of this is zero, I think the consequence of the law is innocuous”, he added.
SIMPLE NATIONAL
The senators also approved this Wednesday a bill that includes commercial representatives and other categories of business intermediation in the Simples Nacional taxation – in the same tax band for real estate brokers.
The rapporteur of the proposal Wellington Fagundes (PL-MT) only accepted an amendment that delays the validity of this law for the next year – after it has been sanctioned. The senator justified the decision by saying that there will be an increase in taxation for small commercial representation companies that earn high gross revenue — between R$3.6 million and R$4.8 million in the last 12 months. It will go from 30.5% to 33%. On the other hand, there will be a tax reduction for the five previous bands.
The senators also approved a provisional measure establishing the “securitization framework”. Securitization companies specialize in placing securities that represent receivables on the market. One of the main items of the provisional measure is the creation of the Letter of Insurance Risk, which is a credit instrument that aims to cover insurance risks.
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