19 Apr 18
News

What increases vehicle TCO in Brazil?

One of the main things increasing total cost of ownership for cars in Brazil is the tax burden the government puts on them, vehicle fleet management expert Joao Andrade told Global Fleet.

For instance, while the annual tax for a US$20,000 car in California (most populated US state) would run no more than US$200, tax on the same priced car in Sao Paulo (most populated Brazilian state) would run at least US$800.

“Taxes on owing a car in Brazil are outrageous,” Andrade said, explaining that this problem is not exclusive to the automobile industry and that high tax burdens hit practically all business sectors in the country.

“I don’t really feel this will change any time soon. You just need to be prepared for this, and learn to live with it,” the executive said.

Authored by: Daniel Bland