Lula signs MP that allocates another R$ 300 million for the purchase of cars

With the measure, the program’s budget for the acquisition of vehicles with lower prices rises from R$ 500 million to R$ 800 million. By including programs for the purchase of trucks and buses, the amount increased from R$ 1.5 billion to R$ 1.8 billion.

The provisional measure will also raise two federal taxes by BRL 0.03, the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (Cofins) on diesel, to fund the extension of the program. This increase will take place from October and will raise an extra R$ 200 million. That’s because the remaining BRL 100 million were in the first MP of the program, which had re-encumbered the two taxes by BRL 0.11.

In addition to the MP, the extra edition of the Official Gazette published an ordinance signed by the vice-president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, which authorizes companies to buy cars at a discount. Until now, the car program was restricted to individuals, in order to prevent rental companies from buying the vehicles and making resources run out faster. For buses and trucks, the participation of companies has been in effect since the last 21st.

Demand

The extension of the program had been announced on Wednesday because the R$500 million earmarked for buying cars had run out. According to the Minister of Finance, Fernando Haddad, demand from individuals exceeded forecasts . Earlier, Alckmin confirmed that Lula would sign the MP even this Friday.

The credit ceiling for buses and trucks remains the same. There are BRL 700 for trucks (BRL 100 million have already been used) and BRL 300 million for vans and buses (BRL 140 million already used). The program will remain in effect until the tax credits are exhausted.

tax credits

The fleet renewal program is financed through tax credits, discounts granted by the government to manufacturers in the payment of future taxes, totaling R$ 1.8 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$ 800 million for cars (against R$ 500 million previously) and R$ 300 million for vans and buses. The program has a term of four months, but it can end sooner, as soon as the tax credits are exhausted.

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. With the extension, the reencumbrance will rise to R$ 0.14 in October.