Aloisio Mercadantethe president National Bank for Economic and Social Development (BNDES), protects measures aimed at restrict imports of tax-free electric vehicles to increase local production. During a seminar organized by the Federation of Industry of the State of São Paulo (Fiesp), Mercadante stressed the importance of tax incentives for electric vehicles made in Brazil.

In his speech, Mercadante emphasized that the exemption from imports of these cars is inconsistent, while policies that encourage domestic production are not applied. He compared the situation to the United States, which offers a $7,000 subsidy for electric vehicles made in the country. Meanwhile in Brazil, local automakers face taxes and high interest rates, but cannot enjoy benefits comparable to those of imported cars.

“The United States gives $7,000 for an electric car made in the USA and we give zero taxes on imports of electric cars (…) It makes no sense for Brazil to exempt imports and tax domestic production, we must look for another model, because whoever creates workers places, pays taxes, pays the highest interest rate in the world, has no benefit, and the car, ready from abroad, comes unencumbered.“, the president said.

In order to encourage domestic production of electric vehicles, the President of BNDES proposed to accept an import quota for these vehicles, with a gradual reduction over time. The measure encourages automakers to invest in local production, guaranteeing jobs and significant tax revenue for the country.

Strengthen the national industry

BNDES intends to submit this proposal to the National Council for Industrial Development (CNDI), the body responsible for developing public policy for the industrial sector. The intention is to create a new model that favors local production and balances the conditions for national automakers to compete fairly in the electric vehicle market.

In addition, Mercadante emphasized the importance of supporting the domestic industry and emphasized the economic and environmental benefits of electric vehicles. He pointed out that it is necessary to create a favorable environment for the development of this industry in the country, using the opportunities for sustainable growth and the need to reduce emissions of polluting gases.

“We need prudential rules to avoid wrongful default and we are asking for three to four months to get this product back on the market. It makes life easier for entrepreneursMercadante said.

The measure, proposed by the President of BNDES, reflects the search for greater autonomy in Brazil’s electric vehicle production, stimulating local industry and promoting more sustainable development. The gradual reduction of duty-free imports will help create a more balanced and competitive environment, encouraging automakers to invest in national technologies and production processes, thereby benefiting the country’s economy and the environment.

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Source: Globe

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