With an estimated duration of three to four months, the program that guarantees the price cuts for popular cars was confirmed by the National Treasury Secretary, Rogério Ceron.
In a press conference, Ceron pointed out that the fiscal impact on the tax cut for making cars cheaper is being meticulously studied by the Treasury and that it will be “fully compensated”.
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According to him, the policy is being refined by the economic area, together with the MDIC (Ministry of Development, Industry, Commerce and Services), led by Geraldo Alckmin.
The main objective is to significantly increase car purchases during this transitional period and generate benefits for the Brazilian population.
Understand how the tax reduction scenario on vehicles looks like
The Government's intention is to establish a plan to reduce federal taxes, such as PIS/COFINS and IPI, on vehicles that cost up to R$ 120,000. This means a significant reduction between 1.5% and 10.94% in the final price of these vehicles.
In addition, the rate that demonstrates the decrease will alternate within this range, following three super important factors.
The first is the social aspect, which promotes more access to car purchases. That is, the more affordable a vehicle is, the greater the tax discount.
Not to mention that energy efficiency will also be taken into account when rewarding manufacturers that pollute less and encouraging them with tax breaks.
And, last but not least: industrial density. Automakers that are more aligned in the production of cars in Brazil will also be favored with this measure.
Government interest in the return of popular cars
The Lula government is determined to bring back the popular cars, but it will not be an easy task.
This is because the automotive sector has faced significant challenges after the pandemic, with difficulties in production and supply of parts, in addition to the drop in demand for automobiles, which comes to a standstill assemblers.
Currently, the most affordable new cars on the market are priced between R$70,000 and R$80,000. However, there are two options: the Fiat Mobi Like and the Renault Kwid dispute the title of cheapest car on the market, with prices suggested by the respective automakers around R$ 68,990.