Starting from January 1, 2027, Uruguay will adjust its preferential tax policies for electric vehicles. Pure electric vehicles with an import price (customs duty-paid price) exceeding US$19,000 will begin to pay specific domestic consumption taxes...

According to the latest administrative decree issued by the Uruguayan government, starting from January 1, 2027, Uruguay will adjust its preferential tax policies for electric vehicles. Pure electric vehicles with an import price (customs duty-paid price) exceeding US$19,000 will begin to pay domestic specific consumption tax (IMESI), and the comprehensive tax exemption policy previously enjoyed will be tightened.

The decree was signed by Uruguayan President Yamandú Orsi and the heads of the economic and industrial sectors. The policy applies to Class F passenger cars and does not involve commercial vehicles.

Electric vehicles are taxed according to price, and low-priced models still enjoy discounts

Under the new policy, pure electric vehicles with import prices of no more than US$19,000 will continue to be exempt from IMESI.

After exceeding this price, the tax rate will be managed at a hierarchical level:

Customs duty-paid value of US$19,001 -27,000: 5% IMESI is levied;

Customs duty-paid value above US$27,001: 9% IMESI is levied.

Compared with pure electric vehicles, the tax rate for hybrid vehicles continues to be determined based on engine displacement. Different displacements correspond to an IMESI tax rate of 7% to 34.5%. The price range is different, and the applicable tax rates are also different.

This means that Uruguay has not cancelled its new energy support policies, but has begun to concentrate more fiscal incentives on electric vehicles with relatively affordable prices.

After the market matures, policies begin to "accurately support"

The Uruguayan government stated in the decree that the import and sales of local passenger electric vehicles have continued to grow in recent years. Although the proportion of new energy vehicles in the country's car ownership is still not high, the market has entered a stage of stable development.

Officials believe that as the cost of electric vehicles continues to decline, tax incentive policies should also be dynamically adjusted according to market changes. While continuing to support energy transformation and green transportation, financial subsidies should be avoided from covering high-priced models for a long time.

In other words, Uruguay's policy thinking has gradually shifted from "inclusive subsidies" to "targeted support", and in the future, more medium and low-cost new energy models will be encouraged to enter the market.

What does it mean for China exporters?

For China automobile exporters, the impact of this policy is mainly concentrated on new energy products.

At present, the competitiveness of China brand electric vehicles in the South American market continues to increase, and the import price threshold of US$19,000 set by Uruguay this time also means that different models will face different tax burdens.

For models whose import prices are controlled within US$19,000, the tax advantage still exists; while for new energy models that are positioned at mid-to-high-end, the terminal selling price and competitiveness after entering the Uruguayan market need to be re-evaluated.

Source:https://www.elobservador.com.uy/economia-y-empresas/impuestos-los-autos-electricos-gobierno-resolvio-aplicar-imesi-vehiculos-cuyo-valor-importacion-supere-los-us-19-mil-n6049269

Source: Guangdong Good Car

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