Fund from oil tankers can be used to renew car fleet

“I came to discuss with the vice-president the possibility of establishing a program that uses the fund of the oil companies and dedicating this fund to the ecological transition through the renewal of the fleet of very old cars, which need to be withdrawn from circulation, through compensation so that the fleet is renewed with respect for the environment,” said Haddad.

According to Haddad, technicians from the Ministry of Finance will study the proposal. The minister pointed out that the money is separate and will not involve new expenses. “We are going to set up a small team to study (the proposal) and we are going to give feedback to him (the vice president and minister Alckmin). The process is fast. It is a resource that is already segregated for this,” he added.

In December, the previous government regulated the Renovar program, by decree. The original program provided for the replacement of trucks, road implements, buses, minibuses, vans and vans that were more than 30 years old, through a fund made up of resources from fuel companies. Now, the current government intends to extend the program to very old cars.

Banco Central

Haddad made the statement about an hour after meeting with the president of the Central Bank (BC), Roberto Campos Neto. Upon leaving the Ministry of Finance, the minister said that the meeting was a routine meeting and that the two addressed various issues, without specifying whether they discussed the new tax framework and on interest rates.

“It was a routine meeting in which we talk about various topics, align information, exchange information, establish some protocols. It was (a conversation) very good. There is no specific agenda, we talk about everything”, he declared.

Haddad and Campos Neto exchanged barbs in recent weeks, after the Monetary Policy Committee (Copom) meeting, which maintained the Selic rate (basic interest rate) at 13.75% per annum. Shortly after the Copom statement indicated that it could raise interest rates in the coming months if inflation does not fall, Haddad classified the text as “very worrying”.

Last week, when the Copom released the minutes of the meeting, Haddad said that the document came “with more suitable terms”. The minister asked for collaboration between the BC and the economic team to coordinate fiscal (which takes care of revenue and public spending) and monetary (interest rate to curb inflation) policies. According to him, the union is necessary for the country to grow with low inflation and job creation.