Decree 5142 authorizes the import of vehicles with flex fuel technology with tax incentives

This Ministry of Hydrocarbons and Energy release was published using machine translation.

UCOM MHE 04-11-2024.- With the aim of diversifying the energy matrix in the country, the Government promulgated Supreme Decree 5142 to encourage the use of additives of plant origin through the import of vehicles with flex fuel technology. In addition, this rule modifies the tax treatment applicable to the importation of hybrid vehicles.

This measure is part of a set of tax incentives in the energy field aimed at promoting the acquisition of this type of vehicles. In this sense, the standard applies to vehicles with flex fuel technology, self-rechargeable hybrids (HEV) and plug-in hybrid electric vehicles (PHVE).

Regarding the definition, the standard establishes that vehicles with flex fuel technology are those that can interchangeably use fuels with a mixture of additives of vegetable origin and fuels of fossil origin, or a combination of both in different proportions.

Likewise, it is established that self-rechargeable hybrid vehicles are those that combine a combustion engine and an electric motor, without the need for an external connection to charge the battery.

On the other hand, plug-in hybrid electric vehicles (PHVE) are those that also combine a combustion engine and an electric motor, but require an external connection to charge the battery.

The standard also provides for the granting of credits for the manufacturing, assembly and purchase of motor vehicles with flex fuel technology, considering them as financing for the productive sector. Financial entities that already offer products for this purpose are authorized for their application.

In addition, the rates of the Tariff Levy and the Specific Consumption Tax (ICE) are modified for the import of motor vehicles with flex fuel technology and self-rechargeable hybrid vehicles for three years, computable from the day following the publication of the resolution. governmental.