Alckmin says extension of program for cars will be decided ‘further ahead’ – 06/20/2023 – Market

Vice President Geraldo Alckmin (PSB) said this Tuesday (20) that the government has not yet defined whether it will extend the program that reduced the price of cars in Brazil.

“This will be decided a little later. Probably, this is not a definitive decision, but probably when the R$ 500 million ends, the program, the stimulus, ends”, he said.

A Sheet found that the resources requested by automakers that joined the program already add up to R$ 300 million —which represents 60% of the available ceiling.

The Minister of Finance, Fernando Haddad, has already stated that the government “has no room” to extend the incentives.

The Executive reserved R$ 1.5 billion for the program: R$ 500 million for cars, R$ 700 million for trucks and R$ 300 million for vans and buses.

Alckmin is, today, the acting president, since President Lula (PT) went to Europe for meetings in Italy and France.

The socialist made the statements in an interview after participating in an event at the CNI (National Confederation of Industry). He is also Minister of Development, Industry, Commerce and Services.

At the meeting, Alckmin echoed Lula’s criticism of the Central Bank’s failure to lower interest rates. “While the interest does not fall, and we are sure that it will fall, we are going to help so that the consumer can have access”, he said.

Last Friday (16), Fazenda updated the list of cars included in the discount program, reaching the number of 266 versions and 32 models from nine automakers.

Companies can request more funds as they use the amounts requested until the limit of R$ 500 million available as a tax credit for cars is reached.

Discounts sponsored by the government for popular cars range from R$2,000 to R$8,000, and may reach higher values ​​at the discretion of manufacturers and dealerships. This represents a reduction of between 1.6% and 11.6% on current values.

The event at CNI was about the carbon market. The vice president stated that the government should soon define what it sees as ideal for a regulatory framework for the area market.

“The government is finalizing the bill to evaluate the best way to forward it on the regulated carbon market,” he said.