President Lula signs law modernizing import taxation and promoting green mobility

President Luiz Inácio Lula da Silva signed Law No. 15,071/2024, amending previous legislation related to the Mover Program (Green Mobility and Innovation) and introducing simplified taxation on international postal shipments.

In the realm of green mobility, the new law simplifies the import of vehicles and auto parts, granting individuals and businesses equal tax treatment. This move enhances competition in the domestic market and fosters innovation in the automotive industry.

After consulting with the ministries associated with the program, President Lula chose to veto Article 1 of the Bill for contradicting public interest due to issues concerning both technical aspects and substantive merit. There was also a request to veto Article 3 of the Bill, citing unconstitutionality and conflict with public interest, as the provision violates the Constitution (Article 61).

The presidential approval aims to address long-standing challenges in the simplified taxation system established in 1980, which no longer meets the demands of today’s global e-commerce landscape. With these changes, the federal government seeks to streamline operations, safeguard consumer rights, and foster a more competitive and sustainable market in Brazil.

Recent updates have also bolstered the law that established the Mover Program (14,902/2024). The initiative aims to promote the use of clean technologies and the importation of innovative products, solidifying Brazil's commitment to sustainability and industrial modernization.

IMPORT TAX — The new law eases the taxation on imported medications for personal use. Moving forward, the Ministry of Finance will have the authority to adjust import tax rates, eliminating previous value limits and minimum rates to ensure greater accessibility to essential medicines.

The objectives of the enacted legislation also include transparency and tax efficiency. E-commerce companies will be required to provide necessary information for customs declarations before goods arrive in the country and to remit owed taxes directly to the parties responsible for registering the declaration.

In cases of purchase cancellations or returns of products from abroad, the regulation outlines clear procedures for tax refunds, ensuring greater security for consumers.

GLOBAL COMPETITIVENESS — Designed by the Ministry of Development, Industry, Trade, and Services (Ministério de Desenvolvimento, Indústria, Comércio e Serviços / MDIC) in partnership with the ministries of Finance (Fazenda) and Science, Technology, and Innovation (Ciência, Tecnologia e Inovação / MCTI), the Mover Program encourages investments in new technological pathways and increases the requirements for decarbonizing the Brazilian vehicle fleet, including passenger cars, buses, and trucks.

The Mover Program aims to support global competitiveness, integration into global value chains, and alignment with a low-carbon economy within the production ecosystem. In return for investments in research and development (R&D) and domestic production, it anticipates the granting of financial credits to eligible entities. A total of BRL 19.3 billion in financial credits is expected to be distributed by 2028.