Government will release another R$ 300 million for the purchase of cars – 06/28/2023 – Market

President Luiz Inácio Lula da Silva (PT) is going to put over R$300 million in the program that grants discounts to the purchase of “popular” cars to continue stimulating sales in the automotive sector.

The government had already made R$ 500 million available for the purchase of light vehicles with rebates, an amount that should now rise to R$ 800 million.

According to government officials, an amount of BRL 80 million will be released within the initial limit of BRL 500 million and will be exclusively sold to individuals.

This portion was blocked because of a rule in the MP (provisional measure), which ordered to accommodate within the limit the impact of the loss of collection with IPI (Tax on Industrialized Products) and PIS/Cofins due to discounts granted by automakers (sponsored or not for the government).

According to interlocutors, of the initial limit of R$ 500 million, only R$ 420 million were effectively accessed by automakers because of this rule.

Another R$ 220 million will be released for sale to the general public (including individuals and companies), but will be subject to the reduction of revenue losses in collection.

The information about the expansion was advanced by Minister Fernando Haddad (Finance) to columnist Míriam Leitão, from the newspaper O Globo, and confirmed by Sheet with members of the Treasury and Mdic (Ministry of Development, Industry, Commerce and Services).

Until the last update, on Friday (23), the volume of tax credit authorized by Mdic for use in the program was R$ 420 million. Since then, there has been an impasse over whether or not to expand the volume of resources. Haddad even claimed that there was no “margin” to expand incentives.

When the program was launched, on June 5, the estimate was that it would last about four months. With the success of the plan, resources for cars reached R$ 400 million in just two weeks.

Discounts sponsored by public coffers for cars range from R$2,000 to R$8,000, and may reach higher values ​​at the discretion of factories and dealerships, and are valid for new vehicles with market prices up to R$120,000.

See the complete list of cars included in the program here. In the last update released by the Mdic, the plan had 266 car versions and 32 models from nine automakers.

Lower price, greater energy efficiency and greater industrial density (capacity to generate jobs and growth in the surrounding areas) were the three criteria taken into account to define the discount bands. The higher the score on these requirements, the greater the applicable discount.

The formulation of the program to encourage car purchases was announced for the first time on May 25th by Alckmin. Initially, the focus of the policy was on cars priced at up to R$120,000, but the government decided to also include trucks and buses – with discounts ranging from R$33,600 to R$99,400.

The exclusivity of car sales to individuals had been extended until July 5th. At the end of this period, the program would also be released to companies. The purchase of buses and trucks at a discount is available to legal entities from the 21st.