Brazilian President Luiz Inácio Lula da Silva signed a law promoting eco-friendly vehicles and imposing an import tax on purchases up to $50.
This new legislation, approved by the Chamber of Deputies and the Sustainable Economic and Social Development Council, establishes the Green Mobility and Innovation Program (Mover).
The program incentivizes manufacturing vehicles with lower environmental impact.
The import tax was not initially part of the project but was included after government-opposition negotiations aimed at increasing tax revenue.
Previously, purchases up to $50 were subject only to state taxes. The new law introduces an additional 20% import tax on the purchase price.
The federal government’s Mover project allocates 19.3 billion reais (about $3.5 billion) in incentives over five years.
It includes tax reductions for research, technology development, and the production of low-emission vehicles.
This move comes as part of a broader global trend towards sustainable practices and reducing greenhouse gases.
Brazil, facing pressure to meet international climate commitments, aims to transform its transportation sector, which significantly contributes to carbon emissions.
Lula’s administration understands that promoting green vehicles will have economic and environmental benefits.
Additionally, the import tax aims to boost domestic revenue, ensuring funds for further environmental initiatives.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error