May 31st, 2024


1. Chamber of Deputies approves incentives to decarbonize vehicle manufacturing

On Tuesday (29), the Chamber of Deputies approved a bill creating incentives to decarbonize vehicle manufacturing nationally.

The bill was named the Green Mobility and Innovation Program (MOVER). It creates five-year financial incentives of R$19.3 billion and reduces the Tax on Industrial Products (IPI) to encourage research and technology development aimed at manufacturing vehicles with lower greenhouse gas emissions.

The bill was created by the Executive Power as part of President Lula’s promises related to neo-industrialization. The Ministry of Industry has also implemented regulatory measures to put the program in place, granting car manufacturers access to financial incentives. The bill will now be assessed by the Senate.

Câmara dos Deputados: Câmara aprova incentivo para descarbonizar produção de veículos

2. Congress begins to discuss rules for new consumption taxes

The working groups in the Chamber of Deputies responsible for the constitutional amendment establishing new tax rules for consumption have begun discussing the bills.

Both groups plan to deliver reports on the matter by mid-July. The Federal Government plans to approve the bills by the end of the year.

This week, the groups heard from representatives of the manufacturing, commerce, and service sectors, as well as the Special Secretary for Tax Reform, Bernardo Appy.

UOL: Câmara analisa regulamentação da reforma tributária; veja próximos passos

3. Lula enacts law creating incentives for modernizing Brazil’s industrial sector

On Tuesday, President Luiz Inácio Lula da Silva enacted a law creating the Accelerated Depreciation program, which aims to modernize the Brazilian Industrial sector.

According to supporters, the bill creates financial incentives that allow companies to invest in newer equipment for their factories.

The administration says that the program will provide R$3.4 billion in financial credit for companies to buy new machines, equipment, devices, and instruments.

G1: Lula sanciona lei para depreciação acelerada de máquinas e equipamentos com foco na modernização da indústria
Poder360: Lula sanciona lei para depreciação acelerada de máquinas

4. Unemployment rate reached 7.5% in quarter that ended in April

According to the National Household Sample Survey (PNAD), the unemployment rate in Brazil reached 7.5% in the quarter that ended in April. The survey is conducted by the Brazilian Institute of Geography and Statistics (IBGE).

The rate remained stable compared to the previous quarter ended January, when it was 7.6%. In the same period of 2023, the rate was 8.5%.

This quarter’s result is the best since 2014 (7.2%) and is below what the financial market expected (7.8%).

IBGE: PNAD Contínua: taxa de desocupação é de 7,5% e taxa de subutilização é de 17,4% no trimestre encerrado em abril

5. Chamber of Deputies ends tax exemption for imported products costing up to US$50

On Tuesday, the Chamber of Deputies approved the end of the tax exemption on imported products costing up to US$50.

Representatives suggested a 20% aliquot after negotiating with the federal government. For products costing more than US$50 and less than US$3,000 (around R$16,500), taxes will be 60% with a US$20 discount (around R$110).

The main reason representatives offered for the decision was to protect the national manufacturing sector, which is unable to compete with Chinese products.

In recent years, small item imports from China have dominated the Brazilian market. The bill will now be discussed in the Senate. 

Câmara dos Deputados: Câmara aprova taxa para produtos importados de até 50 dólares