Popular car package receives Lula’s endorsement, informs Haddad

The stimulus package for the production of popular cars received this Thursday (1st) the endorsement of President Luiz Inácio Lula da Silva, said the Minister of Finance, Fernando Haddad. He presented the final version of the program to the Planalto Palace, which will be analyzed by the Civil House.

The minister did not inform the release date. According to him, the date will depend on President Lula’s agenda and the overcoming of bureaucratic obstacles, such as opinions from the Federal Revenue and the Attorney General of the National Treasury. He, however, said that he expects the Civil House to complete the analysis of the provisional measure on Monday (5).

Haddad just said that the program will last “around four months” and explained that the temporary reduction in taxes will not have an impact on public coffers because the source of funding is defined.

“We reached an understanding. It was a good design for the MDIC (Ministry of Development, Industry, Commerce and Services), good for the Treasury. The two ministries are very well contemplated”, said Haddad upon returning from the Planalto. According to him, the package will remain in effect until interest rates start to fall in Brazil.

“This is an issue limited to the coming months so that there are no layoffs. Above all, there is a great deal of concern with employment in the automobile industry and throughout the (productive) chain. It is a temporary thing, with a defined value and defined time”, explained the minister.

According to Haddad, Lula validated the source of resources to finance the program. According to him, the final impact of the tax waiver will be less than the R$ 2 billion initially announced and will be fully offset. “The impact not only does not reach R$ 2 billion, but is more offset by the measures I took to the President of the Republic”, he declared.