Lula will sanction taxes on international purchases up to US$50

Or vice-president Geraldo Alckmin (PSB) declared that the president Luiz Inácio Lula da Silva (PT) will probably sanction on July 2 legislation that imposes a 20% tax on international imports up to US$50. Alckmin was present at the celebration of the 70th anniversary of the National Transport Confederation (CNT) in Brasília, last Wednesday (19).

During his speech on stimulus for the transport sector, he emphasized the program’s bill Green Mobility (Move), focused on benefits for the automobile industry. However, the text now includes an article that introduces a 20% tax on external purchases of up to US$50.

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“I would highlight Mover, we need to renew the automotive industry. So we launched a program that should be sanctioned by President Lula on the 2nd“, commented Alckmin.

This increase relating to import taxation was attached to the Chamber and is considered a “jabuti” by parliamentarians — a term used when unrelated elements are inserted into a proposal. In the Senate, rapporteur Rodrigo Cunha (Podemos-AL) even eliminated this part of the project, arguing that it is not related to Mover.

However, in order to honor a government agreement with Arthur Lira (PP-AL), president of the Chamber, legislators reincorporated the taxation clause into the document.

About the Mover Program

Launched in December by the government via provisional measure, the Mover program is already in force, although the regulations will only come into effect after ratification by Congress. The project aims to support:

• technological development;
• global competitiveness;
• decarbonization;
• innovation in vehicles, trucks and components.

Mover allocates R$19.3 billion in financial credits from 2024 to 2028, which can be applied by companies to deduct federal taxes as a reward for investments in research and development (R&D) and production initiatives.