Confaz raises the ceiling for vehicle purchases with ICMS exemption on PCDs to R$ 100,000

Confaz (National Council for Finance Policy) announced on Thursday (9) the increase — from R$ 70 thousand to R$ 100 thousand — in the maximum price of vehicles sold to people with disabilities (People with Disabilities) with partial exemption from ICMS.

The ceiling was the same for almost 12 years, which left the options scarce for this audience.

Until this week, only cars that cost less than R$ 70 thousand were eligible for exemption from IPI and ICMS. This limit has been in effect since September 2008. Since then, inflation has advanced by more than 100%, in other words, R$ 70 thousand in 2008 were worth the same as approximately R$ 140 thousand is worth today.

The decision was unanimously taken by the collegiate in a virtual meeting.

According to Confaz, the measure expands the range of vehicles that can be purchased and meets the demands of the segment.

Who is entitled to a PwD car?

The list of medical conditions that qualify for exemptions includes:

• Amputations or missing limbs
• Rheumatoid arthritis
• Artrodese
• Autism
• Stroke
• Heart disease
• Chondromalacia Patella
• Degenerative diseases
• severe or profound intellectual disability
• neurological diseases
• Hearing deficiency
• Visual impairment with visual acuity equal to or less than 20/200 on the Snellen chart in the best eye; visual field less than 20 degrees; simultaneous occurrence of the two situations; monocular vision
• Shortening of limbs and malformations
• Multiple sclerosis
• severe scoliosis
• lack of strength in limbs
• lack of sensitivity
• Hemiparesia ou hemiplegia
• Disc herniation
• Repetitive Strain Injury (RSI)
• Lymphomas
• Injuries with physical sequelae
• Rotator cuff injury
• mastectomy
• Members with congenital or acquired deformities
• Monoparesia
• Monoplegia
• Nanismo
• Diabetic neuropathies
• Ostomia
• Paralysis
• Paraplegia
• Paresia
• Paraesthesia
• Parkinson
• Polio
• Serious back problems
• Internal and external prostheses
• Quadrantectomy
• chronic kidney
• Immune Deficiency Syndrome (HIV)
• Thalidomide
• chronic tendonitis
• Tetraparesis
• Triplegia

What is the process for buying a PwD car?

The first step is to obtain an expert report at a medical clinic accredited by Detran to certify the difficulty in driving.

With the certificate in hand, you must ask the Detran of the respective state to issue a special driver’s license, which will limit the driver to driving only adapted vehicles.

For the government, an automatic vehicle already counts as an adaptation. Therefore, those who have the special license will no longer be able to drive a conventional manual car.

With the report and the special driver’s license, you can enter the purchase of the PwD vehicle.

Do I need to retake classes at the driving school?

It is not necessary to retake the driving lessons. Only in the case of the first license, training in an adapted vehicle is required.

Can those who don’t drive own a PwD car?

If the beneficiary cannot drive, the vehicle must leave in his/her name, but another driver with a common driver’s license can drive it.

PwD car does not pay what taxes?

If the buyer is eligible, the PwD car will have discounted the amounts referring to the IPI (Tax on Industrialized Products) at the federal level and the ICMS (Tax on the Circulation of Goods and Services) on the state side.

There is also an exemption from the IPVA (Motor Vehicle Ownership Tax). In case of financing, the beneficiary is also exempt from paying IOF (Financial Operations Tax).

The application process for tariff exemptions can be done through a broker with the preferred concessionaire.

Are there non-tax benefits on PwD?

Depending on the medical condition described by the certificate, especially those that limit mobility, the beneficiary may apply to Detran for authorization to park in special spaces.

In the specific case of the city of São Paulo (SP), in some cases, the beneficiary is also exempt from municipal vehicle rotation.

Which car can I buy with PwD exemptions?

The benefits of this type of purchase regime are limited to the value and origin of the vehicle that will be purchased.

For ICMS exemption, the car must be 0 km, made in Brazil or in Mercosur countries. The table value cannot exceed R$ 70 thousand.

In the case of the IPI, since the enactment of Law 14,183/2021 in July, the limit value for tax exemption is now R$ 140,000, opening up a greater range of options for buyers. There is also no requirement as to the origin of the vehicle. This new ceiling is valid only until December 31, 2021. From 2022 on, a new value will be discussed.

Therefore, whoever manages to buy a domestic 0 km automatic vehicle for up to R$ 70 thousand will be exempt from both taxes. Between BRL 70,001 and BRL 140,000, only the IPI is subtracted from the price and the ICMS is charged in full.

And how is the resale of a PwD car?

Vehicles purchased after March 2021 cannot be resold for a period of four years. The rule came into effect through Provisional Measure 1.034/2021. The new requirement was demanded by Confaz (National Council for Finance Policy).

Whoever sells the PwD vehicle before this period will have to return to the government the tax exemptions they received, paying the retroactive amounts. In the specific case of ICMS, a fine is also charged.

Information about the period the owner needs to keep the car appears on the invoice and on the vehicle document.

Why have the rules changed?

With the high growth of PwD sales, irregularities such as granting the right to people without special needs and even the resale of the vehicle purchased at a discount for a profit margin after a short period of use, both at the federal and state levels of government decided to make the rules stricter.

Posted by Ligia Tuon