Rafael Fonteles, the governor of Piauí, Brazil, has declared that he will submit a bill to the state legislature seeking to exempt app drivers from the Imposto sobre Propriedades de Veículos Automotores (IPVA), or the Vehicle Ownership Tax. This announcement was made via social media on Friday, indicating an effort to alleviate the financial burdens faced by drivers who operate through ride-hailing platforms. The announcement is especially relevant given the increasing reliance on such services in the state.

The proposed bill aligns with regulations set forth by the state's Department of Finance, indicating that the administration is working within existing legal frameworks to implement this initiative. By exempting app drivers from IPVA, the state government aims to support a growing sector of the economy that has gained significance, particularly during economic downturns when many individuals seek alternative income sources through app-based driving. The initiative could potentially make the profession more sustainable and attractive.

As the bill moves to the Assembleia Legislativa do Piauí (Alepi), there will be opportunities for public discussion and legislative deliberation. This proposal highlights a broader trend where governments are exploring ways to regulate and support emerging gig economies, especially in the transport sector. The outcome of this proposal could set a precedent for similar measures in other states across Brazil, inviting legislative scrutiny and engagement from various stakeholders in the transport and tax arenas.