Bolivia Extends Preferential ICE Tax Rates for Imported Electrified Vehicles Through 2026

The Bolivia government has officially extended the preferential Specific Consumption Tax (ICE) rates applicable to imported electrified vehicles until December 31, 2026, under Supreme Decree 5653. The decision, announced on July 9, does not establish a new incentive program but preserves the current taxation framework. By extending the existing policy, authorities aim to provide greater regulatory certainty for vehicle importers, automakers and dealerships while encouraging the continued adoption of lower-emission vehicle technologies across the country.

Extension Preserves Existing Tax Framework for Electrified Vehicles

The renewed decree keeps the current ICE tax structure unchanged for eligible imported electrified vehicles. Rather than introducing additional fiscal benefits, the extension ensures businesses can continue operating under a familiar regulatory environment during the remainder of the year and through the end of 2026. This continuity is expected to assist import planning, inventory management and long-term business decisions while maintaining policy stability for the automotive sector.

Applicable ICE Tax Rates by Electrified Vehicle Category

The preferential tax treatment continues to differentiate rates according to vehicle technology, category and age. Most newly imported battery electric vehicles (BEVs) remain eligible for a 0% ICE rate, while hybrid electric vehicles and plug-in hybrid electric vehicles continue to be taxed under varying rates based on the established criteria.

ICE Tax Rates Maintained Under Supreme Decree 5653

Industry Impact of the Tax Extension

Maintaining the existing preferential ICE rates offers continued certainty for automotive stakeholders without altering the current incentive structure. Importers, manufacturers and dealers can continue planning vehicle introductions under predictable tax conditions, while consumers retain access to favorable taxation for qualifying electrified models. The measure also reinforces Bolivia's ongoing support for the adoption of cleaner vehicle technologies through a stable regulatory framework rather than introducing new fiscal incentives.

Frequently Asked Questions

Why did Bolivia extend the preferential ICE tax rates for imported electrified vehicles?
The Bolivian government extended the preferential Specific Consumption Tax (ICE) rates through December 31, 2026, to maintain the existing taxation framework rather than introduce new incentives. This provides regulatory certainty for importers, automakers and dealers while supporting the continued adoption of low-emission vehicle technologies. The extension ensures businesses and consumers continue to benefit from predictable tax treatment under Supreme Decree 5653, helping maintain stability across the country's automotive market.

Which electrified vehicles qualify for the preferential ICE tax rates?
Most categories of newly imported battery electric vehicles (BEVs) continue to qualify for a 0% ICE rate under the extended decree. Hybrid electric vehicles and plug-in hybrid electric vehicles remain subject to differentiated ICE rates determined by their powertrain technology, vehicle category and vehicle age. Depending on these factors, the applicable tax rates range from 0% to 20%, consistent with the existing regulatory framework.