2023-06-06 00:40:29
© Reuters Automotive program lean and well funded, says Haddad
The Minister of Finance, Fernando Haddad, defended this Monday, 5, that the discount program for the automotive sector is “fiscally sustainable”, in addition to improving collection as early as January 2024. To fund the tax credits that will be granted to industry, the government decided to partially re-charge diesel, at R$ 0.11 per liter, starting in September. Before, the fuel would have an exemption of R$ 0.35 per liter until the end of the year. With the novelty, the government will raise R$ 1.5 billion, fully allocated to the program.
“It closes the account virtuously, stimulates the industry that is threatened with vacations and layoffs, and in a short time, with a decrease in interest rates, the credit market should return to normality at some point in the future”, declared Haddad, for whom the program is “lean, well funded” and sustainable from a social and environmental point of view. “It serves as a bridge for the moment when credit returns to normality”, he amended.
The initial announcement of the program for the automotive sector at the end of May caused uncertainty about which fiscal solution Haddad would provide to fund the discounts. The measure was released just as the Treasury is trying to improve collection rates, with a view to reducing the Central Government’s primary deficit this year, estimated by the portfolio at R$ 136.157 billion.
Term
Minister Fernando Haddad ruled out the possibility of extending the automotive program announced today if the demand for cars, trucks and buses exceeds the R$ 1.5 billion foreseen in tax credits for the measure. According to him, when the limit of R$ 1.5 billion is reached, the program will be terminated.
“The Fiscal Responsibility Law (LRF) does not allow opening a program without a ceiling for tax waiver, which needs to be compensated. Furthermore, if the ceiling of the automotive program is reached, it means that the industry has sold a lot”, he replied.
The minister detailed, however, that the program will have the first 15 days of exclusivity in discounts for individuals to purchase vehicles, preventing large transport companies from taking most of the discount before self-employed professionals. “If demand for self-employed workers is greater, these 15 days may even be extended,” he added.
The vice-president and Minister of Development, Industry, Commerce and Services (MDIC), Geraldo Alckmin, assured that the tax credits passed on to the automotive industry in the program will even lower vehicle prices at dealerships. According to him, the program already has 20 car brands subject to discounts. “We believe that the discount for consumers will be even greater than the credit, because the factories will compete with each other”, he projected.
Alckmin also clarified that the discount for trucks and buses will require a document for sending an old vehicle for recycling. According to the vice-president, those interested in buying new trucks with the discount will look for old trucks on the market to carry out the process. In the case of trucks, buses and vans, credits range from R$ 33.6 thousand to R$ 99.4 thousand.
“In the case of a small truck, the discount is more than R$ 30,000. If an old truck costs R$ 15,000, there will still be more than R$ 15,000 of discount on the new vehicle”, he exemplified.
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