The program for the automotive industry will grant R $ 1.5 billion in tax exemption



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D'Agência Brasil – Temer signed today (5) the Provisional Measure (MP) that creates Rota 2030 Mobility and Logistics, the new industrial policy for the automotive sector. The Rota 2030 will grant tax credits of up to R $ 1.5 billion a year. This grant will also be valid for car manufacturers operating in the country and for importing companies, which can reduce it on corporate income tax (IRPJ) and social contribution on net income (CSLL).

Route 2030 replaces Inovar Auto, which operated between 2012 and 2017, and granted tax benefits to the production line of the installed sector in the country, in addition to increasing the tax rate on industrialized products (IPI) for the import of automobiles.

However, to benefit from the tax advantage, the automobile industry will have to guarantee a minimum annual contribution of R $ 5 billion in investments in research and development (R & D). Each company can generate a tax credit of up to 10.2% of the amount invested. Indicators and targets related to vehicle safety, onboard technology and fuel economy reduction will be established

By 2022, for example, the objective is to: increase by 11% the energy efficiency of vehicles sold in the country. Another objective is that, by 2027, the so-called driver badistance technologies be incorporated into vehicles marketed in Brazil, which are resources that allow the car to drive more and more automatically. Cars must also leave the factory with labels containing information on energy efficiency (consumption) and installed safety equipment.

"It's a developmentalist aspect, in particular, because there is research and development in this area, especially since I've seen that 39, was the goal of all discussions during this period, but also an extraordinary social function.Is a job creator, "said Temer, at the signing of the Prime Minister, in the presence of representatives of car manufacturers .

A year to complete

The program, announced by the government in April 2017, took more than a year to complete. The MP, which will be published in the edition of tomorrow Official Gazette has an immediate validity, but must be approved by Congress within 120 days. In addition to the deputy of Rota 2030, the President of the Republic also signed a decree amending the table of incidence of the IPI, reducing the current rate of 25% for the program of fiscal incentives.

a range of between 7% and 20% applied only to hybrid and electric vehicles. The idea is to stimulate the market for this type of car in Brazil, which is virtually non-existent.

Larger Tax Credits

The initial expectations of the industry were that tax credits could be higher than the government's tax rate of 10, 2% could reach 12%, according to Antonio Megale, president of the National Association of Motor Vehicle Manufacturers (Anfavea). "We are in a very complex situation from a tax point of view, but this percentage, depending on the investment, may be a bit higher, especially in strategic investments like industry 4.0, connectivity, new technologies of motorization and digitization ".

For Megale, the program opens a space for the sector to increase its international competitiveness, since it encourages those who invest in technology development, in its view, to bring some predictability to the industry. the industry for the next 15 years.

"In 2017, the automotive sector recorded record exports, contributing 4% of GDP and 22% of manufacturing industry," said Minister of Industry, Trade and Business foreigners, Marcos Jorge. Ministry, the auto industry currently employs 1.3 million people, among direct and indirect jobs.

Auto Manufacturer Credit

President Michel Temer also indicated that he would send a bill to Congress. so that automakers can use the alleged credit balance of the IPI, provided in the Inovar Auto program, according to the government, during the period of the previous automotive program. In the framework of the "investment project" modality, it was necessary to collect, during the implementation of this project, an additional IPI of 30 percentage points on imported vehicles.

Under the rules then in effect, the amounts should be refunded to the companies after the start of the manufacture of vehicles in the country, by means of alleged credit of IPI to deduct the tax due. Since the program was closed at the end of last year, there was no time for the compensation to be made.

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