Government is studying a program to remove old cars from the streets – 03/04/2023 – Market

Finance Minister Fernando Haddad said this Monday (3) that the federal government is considering launching a program to renew the car fleet in Brazil, which would be financed with a fund from oil companies.

Haddad spoke of the possibility after meeting with the vice president and minister of Development, Industry, Commerce and Services, Geraldo Alckmin.

“I came to deal with the vice president [Alckmin] of the possibility of establishing a program that uses a fund from the oil companies and dedicating this fund to the ecological transition through the renewal of the fleet of very old cars that need to be withdrawn from circulation through compensation so that the fleet can be renewed for the benefit of the environment” , said the minister.

He did not detail how this compensation model would work.

The Minister of Finance indicated that the program was a request from Geraldo Alckmin. Haddad also said that there would be no need to find a source of funds to finance the program.

“I’ve come to pick up the order, I’m going to set up a team to study it and we’re going to give feedback to Vice President Alckmin,” he said.

“It’s fast. It’s a resource that’s already been segregated for that. Resource from a fund that already exists, it’s not a new resource,” added the minister.

The program is a demand from the automotive sector, which seeks to extend to light cars the same type of incentive that already exists for the renewal of the fleet of trucks and other heavy vehicles.

Last year, the Bolsonaro government created by MP (provisional measure) a program for the voluntary withdrawal of vehicles that do not meet the technical parameters of running or that are more than 30 years old.

The existing benefits today apply to trucks, road implements, buses, minibuses, vans and vans. The measure was planned especially for freelancers, with an older fleet.

The law has a controversial provision that allows oil and gas exploration and production companies to withdraw money from research and innovation to invest in renewing the fleet of trucks and buses.

Then-president Bolsonaro sanctioned the text with some vetoes, but maintained the controversial device.