Finance Minister Fernando Haddad.| Photo: Washington Costa/Ascom/MF.

Finance Minister Fernando Haddad said this Friday (26) that the tax cut on cars worth up to R$120,000 should last between three and four months. The federal government announced the measure on Thursday (25) to lower the cost of so-called popular cars.

Haddad said that his ministry and the Ministry of Development, Industry and Commerce, led by Geraldo Alckmin, should submit an assessment of the initiative’s impact by Sunday (28).

In an interview with GloboNews, the Minister of Finance reinforced that the popular car rescue program will be “topical” and should not extend beyond this year. “We are talking about a program that can last three or four months, it is not structural,” he said.

However, the government has not yet defined the exact duration of the initiative. Haddad also stated that the fiscal impact should not reach R$ 8 billion as estimated by specialists. “It doesn’t reach a quarter of that value”, pointed out the minister.