Popular car: Haddad barred ad due to Alckmin failure – 05/25/2023 – Market
President Luiz Inácio Lula da Silva (PT) saw his expectations for this Thursday, May 25, Industry Day, frustrated. For the date, the Planalto Palace had scheduled the announcement of the plan to reduce the price of popular cars in the country.
The government even planned an open ceremony on the second floor of the Palace to launch the package. Among the guests, the president of Anfavea (National Association of Automotive Vehicle Manufacturers), Márcio de Lima Leite, and of Fiesp (Federation of Industries of the State of São Paulo), Josué Gomes.
Also there were the presidents of CUT, Sérgio Nobre, and of Força Sindical, Miguel Torres. The ceremony was, however, converted into a closed meeting.
Already at the opening, Lula stated that they had been invited to an announcement that would not take place there, but within two weeks.
The president’s plans had to be changed the day before, when technicians from the Ministry of Finance realized that, in their statement of reasons, the project prepared by the MDIC (Ministry of Development, Industry, Commerce and Services) was contrary to the LRF ( Fiscal Responsibility Law).
When calculating how much the government will fail to collect by granting tax incentives, the team of Vice President Geraldo Alckmin (PSB) included in the account the projected increase in revenue with the increase in car sales. And that hurts the LRF.
The text had not been submitted to the legal department of the MDIC. He ended up barred from the farm even before being taken to the Civil House.
Lula and Alckmin did not hide their disappointment upon hearing the news, according to their collaborators. But Haddad claimed delaying the launch was preferable to injuring the LRF.
Still according to these collaborators, Haddad even minimized saying that his birthday is on January 25th, but he is equally happy to receive gifts days later.
This was not the only change in the president’s agenda. Originally, the package would be released in the morning at Fiesp. But Lula rescheduled his visit to the federation’s headquarters for late afternoon. According to allies of the president, information reached the Planalto Palace that he would receive a letter of demands.
In Brasília, Alckmin outlined what the measures would be. The main one will be the reduction of IPI and PIS/Cofins for vehicles of up to R$ 120 thousand.
Reductions in final vehicle prices will range from 1.5% to 10.96% —discounts will be greater for cheaper cars. In addition to price, two other factors will be taken into account to determine the size of the discount: energy efficiency and national production. The government will still specify how many reduction ranges there will be.
“The Farm asked [um prazo de] up to 15 days to establish the fiscal issue”, said Alckmin. “And then, yes, the provisional measure can effectively be taken”, he added.
The initial objective of the package was to reduce the initial values of compact models with 1.0 engine to something between R$ 50,000 and R$ 60,000. Today, the cheapest car sold in Brazil is the Renault Kwid in the Zen version, which costs R$69,000. The federal government claims that the reduction in prices can reach 33 models, from 11 brands.