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Experts say that increase in tax on diesel will increase inflation.

Withdrawal of part of the collection of federal taxes – PIS/Coffins and IPI – on diesel in September, 90 days before the deadline initially set by the federal government, in an effort to compensate for Incentive measures for industry to reduce prices of cars, trucks and buses It was criticized by automotive consultants interviewed by Time,

Diesel will become more expensive by R$0.11 in September. The refund of taxes should generate new revenues of R$1.5 billion. This amount will be used to offset the cost of the incentive program for vehicle manufacturers.

“Increasing the burden on diesel to finance this program will only lead to more inflation,” explains Paulo Cardamone, CEO of Bright Consulting, which specializes in consulting for the automotive sector.

That assessment is similar to that of automotive consultant Ricardo Bacellar, who predicts growth in a number of more expensive diesel products.

“Perhaps the most worrying part is the increase in fuel costs, an initiative that, knowing the high dependence of our transportation logistics on road transport, will penalize all Brazilians, whether vehicle buyers or not, in the form of increased costs. General The product and, consequently, the prices, i.e., what everyone will pay to ‘finance a small profit for a few’, it doesn’t make sense to me”, he explains.

The program’s duration of only 4 months was also criticized by Paulo Cardamone. “Measures lasting 4 months in no way solve the problems faced by the sector. A reduction in the price of vehicles from R$60,000 to R$120,000 within this period will lead to additional sales of approximately 100,000 to 120,000 vehicles and a pre-sale that will impact the market at the end of the program”, he claims.

Bacsler also considers the time frame for the measures to be too short. “If on the one hand (the government) established the fiscal limits of the stimulus program, on the other hand it confirmed an extremely short duration and, once again, did not address the real source of the problem of falling sales: the impoverishment of Brazilians in general. But, who cannot afford any other expenses.

According to experts, a large part of the population is already deeply in debt and will not be able to buy a new car at this time. “It is worth looking at what is happening in the retail sector, which operates with an average ticket many times lower than ours (the automotive sector) and is dealing with default rates and indebtedness that are rising, unemployment. There is no mention of uniformly rising levels”.

The CEO of Bright Consulting also believes that the population does not have enough income to purchase a new vehicle.

“What we need for the automotive sector is not related to reindustrialization programmes, the sector is one of the most developed sectors in the country in terms of production efficiency. It needs scale, not just here but around the world, which is linked to economic growth, employment and income growth”, he argues.

Since May 25, Industry Day, Vice President and Industry Minister Geraldo Alcmin had already announced that the government would announce measures, but without giving details. While they were not presented, business at the dealerships was practically at a standstill, with sales falling 30% in the last week of May compared to the last week of April.

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