Automakers negotiate with Government package of measures to stimulate industry

BRASILIA-the National Association of Automotive vehicle manufacturers (Anfavea) negotiates with the Government a package of stimulus measures to the sector. The automakers ' proposal includes several fronts.
The request includes the maintenance of reduced rates for the tax on industrialized products (IPI), the renewal of financing lines of Investment support programme (PSI) in 2014 and the creation of a programme for the modernisation of agricultural machinery and road sector (Innovate-machines).
Despite statements by the Finance Minister, Guido Mantega, that IPI will climb in 2014, the President of the entity, Luiz Moan, believes that there will be full replenishment rates. "I'm working hard so there is no increase," he said.
According to the Government's schedule, the IPI will rise in January 2% to 7%, in the vehicles of up to 1,000 BMWs. The rate increases of 7% to 11% for flex cars between 1000 and 2000 CCS and 8% to 13% for the other cars in this category. A government source admits the possibility of the Government to go back and do the re-composition of the aliquot more smoothly, but evaluates be hard not be no lifting of the tax in 2014.
"The Minister Guido's handling it. Let's wait for the deadline of the IPI by the end of the year. And any changes, if any, will be made next year, but has no decision yet in that direction, or better, in any direction, "said the Minister of development, industry and foreign trade (MDIC), Fernando Pimentel.
Trucks. The Anfavea and nine more entities involved in the transport of cargo presented yesterday by MDIC and to Staff a proposal for renewal of the fleet of trucks, with the goal of replacing the vehicles with more than 30 years of use. According to Moan, 212 thousand ancient trucks circulating in the country. The goal is to swap 30 thousand units per year.
The argument is that these older vehicles increase pollution, insecurity in traffic and fuel consumption. Moan said that a survey of the traffic engineering company (CET) shows that the trucks represent 7% of the fleet, but cause 25% of accidents.
"It can be extremely useful to the Brazilian industry and to Brazil, because the renewal of the fleet would have a very big environmental gain. Anyway, this year is practically closed. If we launch, it will be next year, "said Patel.
Less tax. Without presenting details about the applications of the sector, Moan said the Government would have to offer a funding policy for truckers. The proposal also suggests a negotiation with States to reduce PROPERTY TAXES, as occurs in the State of Minas Gerais.
The President of Anfavea said it also negotiates new conditions for the PSI program that finances the purchase of capital goods, innovation projects and export. The program expires in December and will be renovated with the highest interest.
"Let's try and keep the interest as low as possible," said Moan. He met yesterday with Secretary of Economic Policy of the Ministry of finance, Márcio Holland. "What will change are the conditions. It is natural that change (the interest), because the prime rate went up, "said Patel.