The mixed commission that analyzes Provisional Measure (MP) 843/18 signed the necessary agreement and approved on Wednesday (24), a few days after the deadline limit, the creation of a new industrial policy for the Brazilian automotive sector, the House and Senate news agencies. The MP loses its validity on November 16 and could not be sent for examination by the Chamber of Deputies and the Federal Senate with less than 15 days of validity. Text will now follow for analysis of the House Plenary.
Under the agreement, the rapporteur in the collegiate, Deputy Alfredo Kaefer (PP-PR), agreed to include in the text of the draft conversion law amendments envisaged in two amendments that extend fiscal benefits of car manufacturers in the North, Northeast and Midwest regions .
The amendments were proposed by Senator Armando Monteiro (PTB-PE) and Deputy Fernando Coelho Filho (DEM-PE) and deal with the extension until 2025 of the Regional Development Automotive Regime (Law 9.440 / 97) which took place in December.
According to the approved text, in order to continue benefiting from the presumed IPI credit, companies from these regions are required to make new investments and research for the development of new products or new models of existing products. The agreement favors mainly the states of Bahia, Pernambuco and Ceará, which are home to Ford and Fiat plants.
“It is noteworthy that the fiscal benefit of a regional nature has been promoting significant economic and social development in the Northeast since 1997, through the installation of modern automotive hubs,” said Kaefer. According to him, without the grant, the economic viability of projects and investments in the North, Northeast and Midwest regions would be compromised. The text also foresees the possibility that new projects of assemblers will be presented until June of 2020.
The forecast of total waiver of the provisional measure will be R $ 2,113 billion in 2019; and R $ 1.646 billion in 2020. The resignation has already been included by the government in the budget law project (PLN 27/18) that is being processed by the Joint Budget Commission.
This text was translated by machine from Brazilian Portuguese.