Government will allocate more R$ 300 million in incentives for popular car

President Luiz Inácio Lula da Silva will sign this Friday (30) the provisional measure that will increase by R$ 300 million the resources to be made available for the popular vehicle purchase incentive program.

The announcement was made by the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, during a visit to Paraná. “President Lula is going to sign a provisional measure today allocating another R$300 million to the automobile industry,” said Alckmin, referring to the project that encourages discounts on the purchase of vehicles priced up to R$120,000.

“In the complete project, it is BRL 500 million. R$ 420 million have already been consumed. The rest, the other BRL 300 million – in reality it is a little less because you have to deduct IPI, PIS and Cofins from there – also open to legal entities, in addition to individuals. That is, now it’s for everyone. So it will (total) BRL 800 million”, he added.

A extension of the program had already been announced by the Minister of Finance, Fernando Haddad, on Wednesday (28). At the opportunity, the minister said that the demand for more economical and less polluting cars surprised automakers and the government, practically exhausting the resources available for the program.