The Brazilian government plans a new incentive programme for automakers
Administration of president intends to stimulate domestic production of less polluting cars
It is expected that in the coming weeks, the Ministry of Development, Industry and Foreign Trade, headed by Geraldo Alkmin, will introduce a new automotive mode (MoVer). The idea is to put into effect a programme to stimulate the production of less polluting cars and maintain a zero tax on the import of electric vehicles. This is reported by
Brazil 247, a partner of TV BRICS.
The administration of President Luiz Inacio Lula da Silva has announced the final version of the incentive program for the automotive industry, which provides for the allocation of 1.5 billion reais (297.9 million US dollars) for tax benefits for automakers willing to provide discounts of up to 8 thousand reais (1589 US dollars) for passenger cars and up to 99.4 thousand reais (19.7 thousand US dollars) for trucks and buses.
The Ministry of Finance, headed by Fernando Haddad, helped develop a new incentive plan. Automakers will have to produce less polluting cars with electric, hybrid or internal combustion engines.
Encouragement will be given to those producers who will produce products in the country, emit less carbon and invest more in research and development in this area. Companies that comply with the rules established by the federal government will receive discounts on PIS, COFINS (social charges aimed at financing the social protection system of the population), CSLL (deductions from net profit) and income tax.
Fernando Haddad commented on the final version of the incentive program for the automotive industry. According to the minister, 500 million reais (99.4 million US dollars) will be used for tax benefits for the passenger sector, 700 million reais (139.2 million US dollars) for trucks and 300 million reais (59.6 million US dollars) for buses. The programme will end when the available resources are fully utilised.