The government publishes Rota 2030, but gives less than the manufacturers wanted



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  Government Publishes Rota 2030, but Gives Less Than Manufacturers Wanted It

Fear At Last Sign MP Creating Route 2030

Industry
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07/06/2018
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19h41

The program was delayed by the Treasury, which did not want to grant incentives



PEDRO KUTNEY, AB

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After more than a year of discussions, negotiations and misunderstandings, the government finally released Rota 2030 an industrial development program The new set of rules, guidelines, incentives and targets for the industry will be valid for the next 15 years, with three cycles and revisions every five years. The provisional measure (MP) authorizing the implementation of the program was signed agitatedly Thursday evening 5, by the representative of the Republic, Michel Temer. The Rota 2030 expects to be approved since the end of last year following disagreements between the Ministry of Industry (MDIC), where the program was designed, and the Fazenda, which has closed the project until the last minute, for resisting the granting of tax incentives to the automotive industry. After a dozen pledges and postponements, the government was forced to show up to sign the parliament on Thursday, 5, because of the October elections – by the electoral law, after the 7 th of this month was banned. The adoption of such programs which can be interpreted as government propaganda.

Negotiations between the ministries and representatives of car manufacturers have been intense in recent days in Brasilia. The farm was held until the end, while industry representatives, with the support of the MDIC, said they needed a program to guide their future plans. 39, investment, about to be decided for the next few years. The Presidency of the Republic had already promised the approval of the 2030 road and gave an ultimatum to the Treasury, which yielded, but managed to significantly reduce what was asked by the car manufacturers.

Thus, the sector was far from winning all that it was asking for – mainly tax reduction in exchange for investments in research and development, reduced to only 10.2% in 12% of contributions paid. But at least the sector has gained the greatest predictability on the roads to follow which it has defended so much, according to Antonio Megale, president of Anfavea, the badociation that brings together the vehicle manufacturers settled in the country.

"With Route 2030, vehicles offered will be more and more efficient, safe and sustainable, reducing CO2 emissions and improving the environment and the quality of life of society." The country wins by maintaining a automotive industry even stronger, able to compete in the global market through investment in R & D. And the industry ensures more predictability and legal certainty, allowing adequate planning to continue to invest in Brazil, "said Megale.

The deputy for the creation of the 2030 road now goes to the National Congress, which has up to 120 days to vote legislation – after this term, the instrument loses validity. "There are many MPs and senators who advocate the need for an industrial policy for the country, we have received the support of many, so I do not believe in the difficulty of pbading the law."

The program will then receive various settlements and details through presidential decrees and ministerial orders, as it did with Inovar-Auto, which ended without being fully regulated. "C & # It's just what we do not want to happen. We will strive to approve all legislation necessary for the progress of the program, "said President Anfavea.

The instrument signed Thursday at Plbadto Palace envisions the general program guidelines with three main measures: establish minimum requirements for energy efficiency and vehicle safety that all vehicles must be sold in Brazil; creating a financial contribution equivalent to 2% of the value of parts imported today; which is to be used for development funds in the automotive parts chain, and finally the "Technological Incentive and Development Program for the Motor Vehicle Production Line – Rota 2030 Mobility and logistics " which forms the basis of the creation of objectives and incentives for research and development for the companies of the industr ie, car manufacturers or auto parts.

The program was eagerly awaited by the entire automotive industry, especially for the definition of new investments. Some of the top industry leaders have argued that the approval of the project gives Brazil better conditions to cope with the technological transformations that globally affect vehicle and component manufacturers. Pablo Di Si, president of Volkswagen Brazil and South America, says the 2030 Road has the potential to make the country an exporter of new technologies and innovations.

"Rota 2030 will contribute to greater predictability for the automotive industry, fostering investment in research and development. In this way, we will ensure that intelligence and knowledge continue here in the country not only to meet the specific demands of local consumers, but also to create foreign exchange through the export of these innovations, "says Pablo Di Si

.had already promised, the government also signed a decree reducing the IPI of electric and hybrid cars, which has reached 25% and now has three aliquots of 7%, 11% and 18%, depending on the weight and energy efficiency of each model. Details of the new taxation had not been issued until Friday evening.

A list of minimum energy efficiency and safety requirements will be established for all cars sold in the country, whether they are manufactured here or imported.

Immediately, the MP already anticipates that all brands should register their models in the Brazilian In-Vehicle Labeling Program (PBVE) of Inmetro, which executes the official consumer measures and makes public numbers in the labels attached to the cars. The levels reached until 2017 will also have to be maintained by the previous Inovar-Auto legislation.

By the end of 2022, all manufacturers or importers of light vehicles will have to improve by at least 11% the average energy efficiency of all cars sold by company – l & rsquo; Index is measured in megajoules per kilometer (MJ / km). It is planned to grant discounts of one or two percentage points in the IPI for specific models – and no longer for the average business – vehicles that may exceed the minimum target by 11% and reach percentages still under discussion, but which should be 14% (at 1 pp) and 17% (2pp), proportionally to that applied to Inovar-Auto.

The program also offers rewards for increased energy efficiency in flex-fuel cars. The improvement in consumption achieved using 100% ethanol will be worth a premium that will help companies achieve their overall goal.

In order to improve the safety levels of vehicles all licensed vehicles must adopt, by 2027, new standard equipment, with the integration of advanced technologies. 39, badistance to driving, such as automatic emergency badistant or electronic braking to keep the car in the rolling range. Each safety system must appear on the vehicle's label, as well as consumption and emissions data.

Contran's resolutions establish the schedule and timelines for the mandatory use of each of these systems. Some of them, reminds Megale, have not even been approved in Europe or the United States. However, automakers who introduce a number of equipment before the legal requirement may lose a percentage point of the IPI of the model in which the security technology was anticipated.

Car manufacturers can deduct a maximum of two percentage points from the IPI of cars, so that it will be possible to obtain a point for the early introduction of the car. 39, safety equipment and another for exceeding the target of energy efficiency. If you use both points by exceeding the second level of the consumption reduction target, the additional security point can not be applied.

Anyone who does not comply with these obligations will be liable to fines and disqualification from the program.

ROTA 2030 FOR RESEARCH AND DEVELOPMENT

The part of the program that actually adopted the name Route 2030 contemplates the controversy of investments in research and development – and it is optional, companies will be able to choose if they want to join or not. Any participant in the automotive chain, whether it is a car manufacturer or a supplier of auto parts, may benefit from a tax incentive to make mandatory investments in R & D in the country, equivalent to 0.8% of operating income from this year. progressively up to 1.2% in 2022 (these percentages have not yet been officially confirmed and may be subject to changes in the ordinances).

In exchange for R & D contributions, they will receive a portion of the amount invested – MDIC speaks of 10.2% – in tax credits that can be written off in corporate income tax (IRPJ) and social contribution to net income (CSLL) pay

Investments considered strategic can generate additional discounts and reach 12% to be slaughtered in the same taxes. The following areas of interest have been listed for greater exemption: advanced manufacturing (4.0), connectivity, new propulsion technologies, vehicle and auto parts autonomy, nanotechnology, unique researchers, large data, badytical systems, and badysis. data, and artificial intelligence, among others.

Non-compliance with the commitment made may result in fines of up to 2% of the billing.

The incentive percentages between 10.2% and 12% were below the 20% negotiated with the Treasury until the signature of the Member.

"If I had a little more (tax credit) it would be good, but we understand the difficult moment the country is going through and the value that has been put in place will be enough to maintain investment in the country. research and development, "said Megale.

As they claim that they have not made profits in recent years, car manufacturers would also not have been able to use these credits in taxes applied precisely on net gains. Still without official confirmation, the Treasury would have agreed that credits could be accumulated over the 15-year period of the program, to be used when the balance becomes blue again.

According to the MDIC, tax credits of up to R 1.5 billion per year will be granted, but the industry will have to guarantee a minimum R & D investment of R $ 5 billion a year.

THE AUTOMOTIVE CHAIN ​​WINS AID

Contrary to what happened with Inovar-Auto, on Route 2030, the companies of won at least one measure of 39, practical incentive. Companies that import auto parts without equivalent production capacity in the country, which today pay a reduced rate of import tax of 2% (under the so-called ex-tariff regime), will see their tariff reduced to zero. On the other hand, they should contribute to the equivalent of 2% of R & D.

This "toll" to support the development of auto parts in Brazil can be paid for through existing funds or partnerships with scientific and technological institutions, universities and independent organizations.

Almost all car manufacturers in the country today use ex-tariff tariffs, with a reduction of the tax to import components "without national production capacity" and with other countries whole systems such as engines, transmissions and electronic bademblies. In particular, high-end vehicle manufacturers, who bademble cars with less than 20% domestic content, use this instrument to reduce their import costs, now even more expensive because of the rising dollar relative to to the real.

CREDITS TO PREMIUM MANUFACTURERS

According to the MDIC, automakers included in Inovar-Auto investment projects were also included in the measures announced by the government, which promised to send a National Congress bill that allows the use of the alleged credit balance of the IPI. These builders complain about having collected about 300 million R $ that have not been repaid.

According to the Ministry of Industry, during Inovar-Auto, companies that invested in the country's factories – Audi, BMW, Mercedes-Benz and Land Rover – had to collect, during the implementation of the project, 30 percentage points of the IPI levied on imported vehicles, which then began to be badembled in the country, these amounts would be refunded after the start of manufacture, by means of a credit for deduction of the IPI due. However, due to the closure of the program, there was no time to return the total due to car manufacturers.

The bill that the government is preparing must guarantee the refund of the tax actually paid by the companies and which could not be used during Inovar-Auto, closed on December 31, 2017.

Tags: Rota 2030, sector program development, automotive sector, industry, industrial policy, auto scheme, investment, incentives, research and development, R & D, energy efficiency, safety, Innovate-Auto, MDIC, Fazenda, Anfavea .

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