The IPVA (Tax on Motor Vehicle Ownership) is charged every year from car, motorcycle, bus and truck owners in all states. However, if the owner of the vehicle fails to pay this tax, it can lead to some serious consequences and inconvenience for these people. So, check below what this tribute is for and what happens if you don't make the payment correctly!
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But what is the IPVA for?
Without a doubt, Brazil is one of the most taxed countries in the world. In other words, we have one of the highest tax burdens in the world. Although many people believe that IPVA is used in the construction and preservation of roads and highways, this is not the case.
This means that the tax is only used for remittances from vehicle owners and state revenue collection. Thus, the total collected in the IPVA is distributed as follows:
- 80% is divided in half between the State and the municipality where the vehicle is registered;
- 20% goes to Fundeb (Fund for the Maintenance and Development of Basic Education and the Valuation of Education Professionals).
Who pays the IPVA?
Every individual who owns a vehicle is obliged to pay IPVA. In the case of company cars, there may be a link to an individual or legal entity. Therefore, failure to pay this tax can result in the removal of the person's name and, in more serious cases, the loss of property.
Consequences for those who do not pay the tax due
It is important to point out that there is no traffic fine, for example, because of non-payment of IPVA. However, if the tax is not paid, the owner of the car or motorcycle will not be able to obtain a vehicle license.
Thus, the lack of this license can result not only in a traffic fine, but also in the seizure of the good. Thus, this will end up entailing additional costs, as the owner of the vehicle will be obliged to pay for the days that the vehicle remains in the Detran parking lot, as well as any debts pending.
Therefore, while the debt is not remedied, an interest rate of 0.33% per day of delay will be charged, up to a maximum of 20%, in addition to monthly fines equal to the Selic rate or 1%, whichever is greater.