BRASILIA, Sept 15 (Reuters) - Brazil will end a tax exemption for importing electric vehicles, gradually raising the duty to 35% over three years, Industry Ministry official Uallace Moreira told Reuters on Friday.
Brazil-based carmakers lobbied for the measure, overcoming pushback from Chinese manufacturers who sell electric vehicles in the country.
This week, the European Commission launched an investigation into whether to impose punitive tariffs to protect European Union producers against cheaper Chinese electric vehicle imports it says are benefiting from state subsidies.
The new program will stimulate energy efficiency projects using tax credits, as well as create a mechanism that Moreira called "green taxation."
The plan would stagger the collection of a tax on industrialized products, depending on the energy efficiency of the vehicle models, the recyclability of the products and local production density.
Persons:
Uallace Moreira, carmakers, Geraldo Alckmin, Moreira, Bernardo Caram, Diane Craft
Organizations:
Industry Ministry, Reuters, Industry, European Commission, European Union, Thomson
Locations:
BRASILIA, Brazil