Discount vehicle models will be released this Wednesday

The deadline for automakers to adhere to the tax credit policy ended last Monday (12). Manufacturers sent MDIC confirmation of interest in participating in the program and informed the models that will have discounts.

Expected to last up to four months, or as long as resources are available, the program it was launched on the 5th by the vice-president and minister of development, Geraldo Alckmin, and by the minister of finance, Fernando Haddad.

In the case of cars, discounts range from R$2,000 to R$8,000 and will be granted based on three criteria: social (lower price), environmental (cars that pollute less) and industrial density (generation of jobs and use of national parts).

Art – Criteria for granting a discount for popular cars – Art/Agency Brazil

There will also be a discount of R$36,600 to R$99,400 for buses and trucks. In this case, the discount will vary according to the size of the vehicle and will be used for the renewal of fleets over 20 years old. Micro-buses (vans) and small trucks will receive a discount of R$ 36.6 thousand. Regular-size buses and large trucks will be reduced by R$99,400. The degree of pollution of the vehicle will also be considered.

To get the truck and bus discount, the driver needs to buy a licensed truck with more than 20 years of manufacture and send the old vehicle for recycling. The buyer will need to present a document to prove the destination of the old vehicle for dismantling.

The amount paid for the old truck or bus will be included in the discount. In the case of a smaller truck, which would have a R$ 33,600 discount, the reduction drops to R$ 18,600 if the old vehicle cost R$ 15,000.

Art – discount popular cars – Art/Agency Brazil

tax credits

The fleet renewal program will be financed through tax credits, discounts granted by the government to manufacturers in the payment of future taxes, in a total of R$ 1.5 billion. In exchange, the automotive industry undertook to pass the difference on to the consumer.

Alckmin explained that the use of R$ 700 million in tax credits is foreseen for the sale of trucks, R$ 500 million for cars and R$ 300 million for vans and buses.

To compensate for the loss of revenue, the government intends to partially reverse the exemption on diesel that would be in effect until the end of the year. Of the R$ 0.35 of the Social Integration Program (PIS) and Contribution for the Financing of Social Security (Cofins) currently zeroed, R$ 0.11 will be re-encumbered in September, after ninety days, a period of 90 days determined by the Constitution for the increase in federal contributions.

According to Haddad, the partial reenactment in 2023 will help reduce pressures on inflation in 2024.