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Chamber approves provisional measure with incentives for auto industry

Automakers

Route 2030 creates new tax regime for automakers, offering incentives for research and development
published: Nov 07, 2018 09:19 PM last modified: Nov 08, 2018 04:23 PM
Photo: Luis Macedo/Chamber of Deputies Following changes by deputies, the provisional measure now goes to the Senate

Following changes by deputies, the provisional measure now goes to the Senate

The provisional measure that creates the Route 2030 programme, an important incentive for the automobile industry, was approved on Wednesday (7 November) by the plenary of the Chamber of Deputies. With the approval, the bill now follows for analysis by the Federal Senate.  

The programme, introduced in July by the federal government, reduces taxes for the sector and creates matching incentives for companies that increase investments in products and technologies in the country. The bill received amendments while in Congress, which will now be reviewed by the Senate and President Michel Temer before becoming ready for sanction.

One of the most important measures imposed by the bill is the granting of up to R$ 1.5 billion in tax credits to companies that invest at least R$ 5 billion in research and development projects.

Sector on the rise

The creation of a new regime that organises investments and the tax regime for the auto industry is a long-time demand of the sector, which started growing again, as the economy went into recovery over the last two years.