How the government intends to reduce the price of popular cars

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In an interview with Natuza Nery, Carlos Góes comments on the practical effects of the measure taken by the Lula government. The government announced this Thursday (25) the tax cut to reduce the price of popular cars by up to 10.96%. The measure will apply to vehicles with a final value of up to R$ 120,000 and may make new popular cars cost less than R$ 60,000 again, according to the automotive sector. In an interview with Natuza Nery, the columnist for the newspaper O Globo Carlos Góes and the journalist André Paixão explain what the practical effects of the announced measure should be and what the directions of the industrial policy in the Lula government should be. “The government needs to justify very well [o corte de impostos], especially in a context of fiscal adjustment to subsidize large companies in a context where you are asking society to make a fiscal adjustment at other margins. This is the big risk that we need to discuss. Congress needs to debate and the government needs to be transparent on this margin”, says Góes. Affected by the truck drivers’ protest, automakers remain without production Terezinha Almeida/ TV Vanguarda Góes, who is director of the Market Popular Institute, defends a greater investment in scientific research of basis, making the sectors serve as a “domino effect” for the economy. For him, the industrial policy aimed at the automotive sector goes in the opposite direction. “The automotive sector is not a sector that supplies inputs to other sectors of the economy . In fact, it is at the end of the production chain and uses a lot of inputs.” Listen to the full interview on the podcast O Subject Previous episodes: Brazil is among ‘the most backward countries’ in drug policy, says criminalist Bolsonaristas should use MST’s CPI to gain support from agribusiness and avoid punishment for January 8th Government announces tax cuts with the aim of reducing the price of popular cars

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