Temer signs decree regulating new tax regime for automakers
Mar 13, 2024 23:08:49 GMT -5
Post by account_disabled on Mar 13, 2024 23:08:49 GMT -5
President Michel Temer signed, this Thursday (8/11), the decree called Rota 2030, which establishes a new tax exemption regime for vehicle manufacturers. In return, companies must invest in research and development of products and technologies.
The document was signed at the opening of the Auto Show, in São Paulo, hours after the Senate approved Conversion Bill 27/2018, originating from Provisional Measure 843/2018, which creates the program. Now, the text goes to presidential approval to become law.
According to Federal Revenue projections, the B2B Lead tax waiver with the original text of the MP would be around R$2.11 billion in 2019 and R$1.64 billion in 2020. For 2018, there is no waiver, as deductions in Income Tax and Social Contribution on Net Profit (CSLL) of companies are only valid from next year onwards.
Sector estimates indicate that investments in development should be R$5 billion in three years to benefit from the incentives.
Senate
One day after the Chamber of Deputies approved Conversion Bill 27/2018, the text was voted on in the Senate. The rapporteur of the matter in the House, senator Armando Monteiro (PTB-PE), classified the project as a milestone for the industrial development of the Northeast Region, as it provides specific benefits for automakers installed in the region.
“There was a historical prejudice towards the Northeast, condemned to less sophisticated activities. A prejudice in relation to the potential of the people, especially in relation to the industrial sector and modern services”, he stated.
The parliamentarian highlighted the importance of the presence of the car manufacturer Ford, which has a factory in Camaçari (BA), and the Fiat-Chrysler group, with a manufacturing unit in Goiana (PE). The performance of the automotive sector in these locations, according to the senator, has allowed the formation of human capital, with highly qualified technicians.
The senator from the Federal District, José Reguffe, currently without a party, was the only one present to speak out against the measure. “These exemptions represent a tax waiver of R$2 billion and I cannot understand how governments in Brazil simply prefer to prioritize the automobile industry and not the issue of medicines,” he said.
Reguffe is the author of a proposed amendment to the Constitution that is being processed in the Senate and prevents the taxation of medicines in the country. He highlighted that today 35% of the price charged for medicines are taxes. With information from Agência Brasil.
The document was signed at the opening of the Auto Show, in São Paulo, hours after the Senate approved Conversion Bill 27/2018, originating from Provisional Measure 843/2018, which creates the program. Now, the text goes to presidential approval to become law.
According to Federal Revenue projections, the B2B Lead tax waiver with the original text of the MP would be around R$2.11 billion in 2019 and R$1.64 billion in 2020. For 2018, there is no waiver, as deductions in Income Tax and Social Contribution on Net Profit (CSLL) of companies are only valid from next year onwards.
Sector estimates indicate that investments in development should be R$5 billion in three years to benefit from the incentives.
Senate
One day after the Chamber of Deputies approved Conversion Bill 27/2018, the text was voted on in the Senate. The rapporteur of the matter in the House, senator Armando Monteiro (PTB-PE), classified the project as a milestone for the industrial development of the Northeast Region, as it provides specific benefits for automakers installed in the region.
“There was a historical prejudice towards the Northeast, condemned to less sophisticated activities. A prejudice in relation to the potential of the people, especially in relation to the industrial sector and modern services”, he stated.
The parliamentarian highlighted the importance of the presence of the car manufacturer Ford, which has a factory in Camaçari (BA), and the Fiat-Chrysler group, with a manufacturing unit in Goiana (PE). The performance of the automotive sector in these locations, according to the senator, has allowed the formation of human capital, with highly qualified technicians.
The senator from the Federal District, José Reguffe, currently without a party, was the only one present to speak out against the measure. “These exemptions represent a tax waiver of R$2 billion and I cannot understand how governments in Brazil simply prefer to prioritize the automobile industry and not the issue of medicines,” he said.
Reguffe is the author of a proposed amendment to the Constitution that is being processed in the Senate and prevents the taxation of medicines in the country. He highlighted that today 35% of the price charged for medicines are taxes. With information from Agência Brasil.