RIO DE JANEIRO, BRAZIL – A survey conducted by BDO Consulting disclosed how much taxes consumers pay when buying a brand new car. The tax burden in Brazil can represent up to 43% of the vehicle’s value.
According to the data, a vehicle with up to 1 liter engine (1.0) may have 36.53% of its final price made up by taxes. For cars between 1.0 and 2.0 liters, this figure reaches 43.13%.
The BDO study was conducted in early 2021, therefore, even before the São Paulo state government established an increase of the ICMS (tax on goods and services) charged on the sale of cars in the state.
Below is how much some of the best-selling cars in Brazil would cost if the taxes were eliminated. Pickups and SUVs were left out of the list, because they have a different tax regime:
Chevrolet Onix
Current price of the basic model: R$61.090
Tax-free value: R$38.773
Hyundai HB20
Current price of the basic model: R$52,290
Tax-free value: R$33,188
Chevrolet Onix Plus
Current price of the basic model: R$ 66,520
Tax-free value: R$42,220
Jeep Renegade
Current price of the basic model: R$83,990
Tax-free value: R$47,765
Volkswagen Gol
Current price of the basic model: R$56,190
Tax-free value: R$35,663
Volkswagen T-Cross
Current price of the basic model: R$99,070
Tax-free value: R$62,879
Jeep Compass
Current price of the basic model: R$133,990
Tax-free value: R$75,858
Fiat Argo
Current price of the basic model: R$56,590
Tax-free value: R$35,917
Fiat Mobi
Current price of the basic model: R$40,990
Tax-free value: R$26,016
Chevrolet Tracker
Current price of the basic model: R$92,850
Tax-free value: R$58,931
Hyundai Creta
Current price of the basic model: R$78,990
Tax-free value: R$44,921
Renault Kwid
Current price of the basic model: R$39,390
Tax-free value: R$25,000
Volkswagen Nivus
Current price of the basic model: R$92,440
Tax-free value: R$58,671