Discounts will vary from 1.5% to 10.79%, benefitting the more affordable and better energy-efficient
By Redação AutoIndústria | 5/25/23 | Translated by Jorge Meditsch
The vice president and minister of Development, Industry and Commerce, Geraldo Alckmin, announced measures to incentive the automotive sector’s recovery, among them the tax reduction (IPI, PIS/Cofins) for cars costing up to R$ 120 thousand. Before the announcement, President Luiz Inácio Lula da Silva met the presidents of Anfavea and Fenabrave, Márcio de Lima Leite and José Maurício Andreta Jr., other ministers and manufacturers’ representatives.
The discount will go from 1.5% to 10.79%, obeying four basic criteria: the price of the vehicle – the more affordable, the higher the deduction – energy efficiency, pollutant emissions and nationalization index. At the end of the meeting, Anfavea’s president said the price of an entry car, currently near R$ 70 thousand, could become less than R$ 60 thousand.
The industry avoids using the terms’ popular car’ for this class of product that will be more affordable after the measures announced today, but the government’s idea is exactly to redeem this project that was successful in the past, in 1992.
Besides the tax reduction, direct sales also could be allowed, according to Alckmin, who did not specify how they would happen. He asserted the provisional measure defining the tax discounts would be published in 15 days after the Federal Revenue Office (Receita Federal) evaluates the fiscal matters.
The vice president explained that the meeting called by Lula this Thursday, 5/25, also included labor union centrals’ representatives and defined it as “a very profitable work meeting”. The government had previously promised to announce incentive measures for the automotive market at a Day of Industry event at Fiesp in São Paulo.
There was a change on Tuesday, 5/23 night, when the Planalto Palace called the sector executives to meet the president in Brasília.
Photography: Agência Brasil
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