Companies and professional drivers in Brazil are now exempt from IOF tax when financing the purchase of electric and hybrid vehicles in the country, regardless of horsepower.

This is according to new legislation signed by President Jair Bolsonaro last week and published on Friday (June 21). It compliments a law already giving the IOF tax break on combustion engine passenger vehicles with 127hp or less.

The alteration is meant to serve Brazil’s Rota 2030 automotive industry policy which is aimed at stimulating energy efficiency and pushing for new technologies over the next 15 years. Exempting IOF saves approximately 3% per year on financing.

Via Globalfleet