Localiza, Movida Tax Relief Extended to 2035

Bank of America analysts say Brazil's vehicle rental firms will face near‑zero sales tax until mid‑2030s despite VAT reform targeting 8‑9% rates.
A transition mechanism introduced in January defers tax until 2035 for Localiza and Movida, and until 2033 for Vamos.
Bank of America estimates a 15‑27% pass‑through for car rentals, making fleet rental about 10% cheaper than ownership for corporates.
For trucks, rental is projected 11% cheaper post‑reform, with a 0.2‑point yield increase to 2.6%.