The government of São Paulo announced this Wednesday (30) an incentive program for the production of hybrid, electric or biofuel-powered vehicles in the state called Pró Veículo Verde. The measure provides credits of up to R$500 million for manufacturers that prioritize the local production of less polluting models.
The benefit is granted through bonuses generated on the ICMS (Tax on the Circulation of Goods and Services) paid by the manufacturers.
It is an adaptation of Pró Veículo, which was announced at the end of September. The difference is in the starting values to have access to credit.
According to the state government, the Pró Veículo Verde will serve companies that present an investment from R$ 15 million, while the program announced in the year stipulated a minimum of R$ 30 million.
But there is a distance between being entitled to tax credits and actually receiving them. Anfavea (association of automakers) says that the amounts receivable withheld in the state of São Paulo already total R$ 5 billion – and this refers only to car manufacturers.
In an election year, the João Doria government tries to get closer to the industry and the third sector after being criticized for the increase in ICMS promoted in 2021.
The change was announced in January last year, when zero-kilometer cars, which paid 12% ICMS, began to pay 13.3%. There was a new increase in April, when the rate was readjusted to 14.5%.
The government partially revised the values in February, reducing taxation on used vehicles and also on new electrified models.
Toyota already produces hybrid cars in São Paulo. The Corolla and Corolla Cross models are made, respectively, in Indaiatuba and Sorocaba, in the interior of the state.
In January, the Chinese automaker Great Wall Motors announced that it will assemble hybrid and electric cars in the city of Iracemápolis (interior of São Paulo), at the unit that belonged to Mercedes-Benz.
The company estimates an investment of R$ 10 billion in the long term, divided into cycles.
The first stage started in 2021 and runs until 2025, with a value between R$4 billion and R$4.5 billion.
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