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Taxes soar in Brazil, car prices

Did you know that the price of the Fiat Uno in Brazil is the same as a Honda Civic in Europe? BY: Allard Lunardi TAGS:

Booz & Company, Honda Civic, Products

Fiat Uno,	rates cars in Brazil ,
industrialized, Vehicles Honda Civic in Brazil at a cost much Acima

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Like most things in Brazil, the cost of cars is also higher in comparison other markets because of the taxes, especially Products Tax (IPI).

Brazilians pay for a Fiat Uno, in dollars, the same value as a European pay to buy a Honda Civic.

On average, Brazil pays U.S. $ 32.400 for a Honda Civic, the European pay only $ 15.6 thousand for the same vehicle. Another example is the

Fiat Uno, one of the most popular cars and also one of the cheapest in Brazil costs on average U.S. $ 15.6 thousand, while the Fiat Panda, a model similar to one Brazilian, costs U.S. $ 11 billion in Europe. "The IPI can reach 33% of the value of the vehicle, depending on the displacement. A larger displacement, the greater the percentage of tax, "the analyst explained production, Fernando Trujillo. tax addition to tax other types of taxes, such as the Tax on Circulation of Goods and Services (ICMS), which can reach up to 30% of the final price of a car

and several others.

Another factor affecting the cost, is called "Brazil cost", a term used to refer to the national inefficiency in the area of infrastructure and logistics. "The cost Brasil 'is implicit (in final prices) and runs the entire automotive chain from the import of inputs, says the director for South America of the consulting firm Booz & Company, Fabio Takaki.

Brazil needs of a general restructuring in the sector, so that ... Read the rest at:

http://www.latinobusinessreview.com/sectors/automotive/los-impuestos-en-brasil-disparan- the-price-of-the-car