They are considering reestablishing tariff benefits for importing hybrid and electric cars

During the government of Mauricio Macri a was implemented tariff benefit for importing “ecological” cars. That is, electric, hybrid or other non-polluting technologies. The system operated with an annual quota that was renewed each year through a decree.

The program was maintained in the first three years of the administration of Alberto Fernandezbut, in mid-2023, when the validity of the rule expired, it was not renewed by the then Minister of Economy, Sergio Massa.

The benefit consisted of a tariff reduction. Vehicles with this technology are generally imported from countries outside Mercosur or Mexico. For this reason, pay a 35% extra-zone tariff. With this tax incentive, electric vehicles would pay only 2% and hybrid vehicles, 5%.

After the system crashed, car manufacturers began to demand its reinstatement.

For several weeks now, the Government and the various members of the automotive sector have been working to reestablish the tax benefit. The last meeting was last week.

Various alternatives are being analyzed to develop a “New Technologies” Bill (no longer “sustainable mobility”) which would be presented only in 2025.

“There will be no tariff reduction in the short term. They want to include it in a bill, but the idea is to work on it this year so that it can be discussed next year,” said a source in the sector.

The Ministry of Industry has asked companies to prepare a proposal to then present it to Luis Caputo’s Ministry of Economy.

The issue of the potential cost of this measure is key and, for this reason, it is being postponed to next year, since it is estimated that the State’s accounts will be better.

But that is not the only obstacle. There is also resistance and demands from other sectors. Not only ADEFA officials and representatives participate in the meetings. There are also auto parts manufacturers, the SMATA union (although it did not participate in this last meeting), electronics companies, CIDOA importers, the chamber of motorcycle manufacturers and representatives of the bus sector.

“A very small quota is being considered for importers and the rest will be for factories. The problem is centered on what kind of incentives can be given so that investments are made and not limited only to imports,” explained another automotive source.

This is where you feel the most union pressure that seeks to force the establishment of production of this type of technology. Even more so when we see that Brazil is flooding with investments to manufacture eco-friendly vehicles.

What is the project being analyzed about?

The draft being worked on includes Fixed quota for all and, depending on production and up to a limit, the possibility of importing above the quota to complete the range of vehicles exists. Tariffs would be 2% and 5%, as they were until last year. This is what ADEFA wants.

It is still unclear where to put the incentives: whether in production, suppliers or on demand. Everything that needs to be done in terms of infrastructure is also being considered.