MG Assembly approves law that benefits Novo donors – 07/11/2023 – Market

The Legislative Assembly of Minas Gerais approved this Tuesday (11) in a second round by 46 votes to 16 bill that amnesty tax debts of car rental companies.

The processing of the bill generated controversy. The section that provides for amnesty to car rental companies was proposed in a substitute presented by Deputy Zé Guilherme (PP), from Zema’s base in the Assembly, within a text that determined transparency in transfers of IPVA (Tax on Property of Motor Vehicles) to city halls, which keep part of the tribute.

As it is not directly related to the initial object of the project, transparency in tax transfers, the text was considered a “tortoise”, as these cases are treated in political jargon.

The government of Minas Gerais said in a note that it does not comment on the processing of bills and that it respects the autonomy of the Legislative Power to discuss issues of public interest.

One of the beneficiaries is Localiza, one of the largest in the sector in the country, whose founder is the former Secretary of Privatization and Privatization of the government of former President Jair Bolsonaro (PL), Salim Mattar.

The former minister currently provides advisory and consultancy services to the Economic Development Secretariat of the government of Romeu Zema (Novo).

The function is unpaid and, according to Palácio Tiradentes, is exercised by Mattar “due to his wide experience, especially in the privatization agenda”.

The founder of Localiza was one of the main donors of resources to the Novo party before the 2022 election campaign, in which Zema was re-elected.

Localiza’s chairman of the board is Eugênio Pacelli Mattar, Salim Mattar’s brother, and also a donor to the Novo party.

In a note, Localiza claims to be a non-partisan company with high corporate governance. “The company has been monitoring the issue through associations and the sector’s union”, says the rental company, in the text.

About Salim Mattar, the company states that “the activities of the founders as individuals are personal and carried out in accordance with the legislation in force, having no connection with the Company”.

Localiza also says that Salim Mattar left the company at the end of 2018, “when he resigned as chairman of the board of directors, therefore having no link with the company”.

The report contacted Salim Mattar’s advisory, but did not receive a response until the publication of the text.

The amnesty for rental companies is estimated at R$ 1.1 billion, according to information from Sinfazfisco (Union of Tax, Inspection and Collection Servers of the State of Minas Gerais), cited by deputy Professor Cleiton (PV), contrary to the approval of the project.

Debt forgiveness occurs because the text approved this Tuesday reduces the IPVA charged on semi-new vehicles resold by rental companies, one of the main sources of income for these companies.

Rental companies pay 1% on the operation, while other taxpayers pay 4%. When reselling semi-new vehicles, however, current legislation determines that these companies pay a 3% supplement. The approved project does away with this obligation.

The amount of BRL 1.1 billion in amnesty is what has so far not entered the state’s public coffers because there is a lawsuit contesting the current legislation, approved in 2017, which determines the payment of the 3% complement.

Deputy Sargento Rodrigues (PL) classified the project as an aberration. “We are benefiting rental companies and, some, are close to the Zema government”, he said.