Government can encourage import of hybrid

Government can encourage import of hybrid

The Brazilian government may cut taxes to facilitate the importation of hybrid cars to Brazil. According to information from the State Agency, the proposal was being studied by the Ministries of Finance and of Development, Industry and Foreign Trade (MDIC) and provides for the establishment of an import quota at a rate close to zero, at least in the early years of such import vehicle in the country.

Thus, automakers enabled in the current automotive system (Auto-Innovate) wishing to import hybrid will have to follow the steps of the program, which require the inclusion of national components and finally the manufacture of these cars in Brazil.

Following government laws, hybrid imported here initially arrive with gasoline engines and electric. However, in the second step they would need to convert the engine to flex, allowing the use of ethanol before the nationalization process.

The reduction of import taxes for hybrid cars aims to increase the demand for this type of vehicle, since the tax incentives allow download as much as the price of imported both local production costs of these vehicles models. The political incentives for hybrids is also supported by the Sugar Cane Industry Association (UNICA), since the cars are equipped with flex future.

The proposal studied by the government is slightly different from the suggestion made by the National Association of Motor Vehicle Manufacturers (Anfavea), which had asked the government exemption from the Tax on Industrialized Products (IPI) in the importation of hybrid cars by 2017. Thereafter, only those that initiate local production of automobiles continue enjoying this exemption.

Also according to the State Agency, the government will hold a meeting with representatives of Anfavea in the coming days to discuss the idea. The trend is that a final proposal will be ready by the end of the month, and the measure also depend on the approval of the Ministers and the President of the Republic Dilma Rousseff.

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