Government extends car discount for individuals for 15 days

The acting minister and president, Geraldo Alckmin, signed the ordinance with the extension at the end of this afternoon. The measure was published this Tuesday (20) in extraordinary edition of the Official Gazette of the Union.

Despite the extension in the vehicle program, the MDIC clarifies that nothing has changed in the programs for buses, vans and trucks. Companies will be able to buy these vehicles at a discount starting this Wednesday (21).

So far, the MDIC has authorized the use of R$320 million in tax credits for the sale of cars at a discount – equivalent to 64% of the R$500 million available in this modality. The folder confirmed having received new orders from automakers, but informed that they are still under analysis.

The MDIC prepared a data panel with program updates. The tool allows for the monitoring of volumes of funds released and the list of cars serviced.

assemblers

So far, the program subsidizes the discounted purchase of 266 versions of 32 car models from nine different automakers: Renault, Volkswagen, Toyota, Hyundai, Nissan, Honda, GM, Fiat and Peugeot. The new version of the list can be accessed here.

Regarding buses, vans and trucks, ten truck assemblers joined the fleet renewal program, adding up to a volume of discounts of R$ 100 million, equivalent to 14% of the ceiling of R$ 700 million available for this category.

The truck manufacturers that showed interest were Volkswagen Truck, Mercedes-Benz, Scania, Fiat Chrysler, Peugeot Citröen, 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$140 million, equivalent to 46.7% of the ceiling of R$300 million made available to bus assemblers.

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.

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 term of four months, but may expire 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.