Automakers include more vehicles in discount purchase program

With the inclusions, the program subsidizes the purchase of 266 versions of 32 car models, from nine automakers: Renault, Volks, Toyota, Hyundai, Nissan, Honda, GM, Fiat and Peugeot. The new version of the list can be accessed at government website.

The MDIC reported that two automakers requested additional tax credits of R$ 10 million each. The amount of credits earmarked for vehicles rose from R$150 million to R$170 million, equivalent to 34% of the R$500 million budget for cars.

buses and trucks

With regard to buses, vans and trucks, there were no changes in the registered vehicles or in the requested credits. Last Wednesday (14), the MDIC announced that ten truck assemblers joined the fleet renewal program, adding a volume of discounts of R$ 100 million, equivalent to 14% of the ceiling of R$ 700 million made available for this category.

Truck manufacturers that showed interest were Volkswagen Truck, Mercedes-Benz, Scania, Fiat Chrysler, Peugeot Citroen, Volvo, Ford, Iveco, Mercedes-Benz Cars & Vans and Daf Caminhões.

In the case of buses, nine automakers joined the program. They are: Mercedes-Benz, Scania, Fiat Chrysler, Mercedes-Benz Cars & Vans, Comil, Ciferal, Marcopolo, Volare and Iveco. These companies asked for discounts on taxes totaling R$90 million, equivalent to 30% of the ceiling of R$300 million made available to bus assemblers.

discounts

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.

It is planned to use R$ 700 million in tax credits for the sale of trucks, R$ 500 million for cars and R$ 300 million for vans and buses. The program has a four-month term, but it may expire sooner, as soon as the tax credits run out.

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.