1. Home
  2. / Automotivo
  3. / Governors of the Northeast defend the automotive regime in tax reform
reading time 3 min read Comments 0 comments

Governors of the Northeast defend the automotive regime in tax reform

Written by Corporate
Published 20/12/2023 às 18:59
Governors of the Northeast
Photo: Consórcio Nordeste – Costa Filho.

Importance of extending the automotive regime for regional development

The governors of Northeast Consortium, a legal, political and economic mechanism that unites the nine states of the northeastern region of Brazil, expressed their strong support for the maintenance and extension of the Automotive Regime. This policy is seen as essential for the economic and social development of the Northeast, especially in the context of the imminent vote on Tax reform (PEC 45) in the Chamber of Deputies.

Tax reform and balanced development

A Tax reform, which aims to modernize the Brazilian tax system, presents a crucial moment for the country. With the proposal to establish broader horizons for the national economic organization, the full inclusion of Article 19, dedicated to Automotive Regime, becomes a focal point. This regime is an efficient regional development policy, which has contributed significantly to the industrialization of regions Northeast and Central-West of Brazil.

The constitutional text under debate recognizes the value of the Automotive Regime as a development mechanism, using the structuring potential of the automotive sector to accelerate industrialization. Through the formation of local production arrangements, this regime enables active integration into national and international production chains. It stands out as a policy to correct historical distortions, offering a path to a fairer and territorially distributed development model.

Industrial and social impact of the automotive regime

The adoption of the Automotive Regime has encouraged the installation of vehicle and component manufacturers in areas lacking job opportunities, generating positive results throughout Brazil. These companies, by establishing themselves in regions that most need development, not only modernize the Brazilian automotive market but also contribute to the national industrialization project.

The injection of income into areas undergoing industrialization, resulting from this regime, has been fundamental in changing the social profile of the territory. There are significant advances in economic, education, health, safety and employability indicators, demonstrating the positive impact of this policy.

The full approval of article 19 of the Tax Reform PEC It is seen as crucial for the continuity of investments and the expansion of production chains. This represents a conscious and decisive step towards building a robust national industry, which not only drives regional development but also contributes to the sustainable expansion of the Brazilian economy.

The commitment of the Nordeste consortium

O Northeast Consortium remains committed to maintaining a productive dialogue with the National Congress. The objective is to create a Proposed Amendment to the Constitution that not only fulfills its social and economic role for sustainable development, but also contributes to reducing inequalities in the country.

The governors of the Northeast, led by João Azevêdo Lins Filho, highlight the regional commitment to the search for policies that favor balanced and sustainable growth throughout Brazil, emphasizing the strategic importance of Automotive Regime na Tax reform for the future of the country.

Source: Consórcio Nordeste – Costa Filho.

Be the first to react!
React to article
Register
Notify
guest
0 Comments
Older
Last Most voted
Feedbacks
View all comments
Corporate

CPG Corporate Reports is intended for news about events, projects and announcements from companies in Brazil and the world!

Share across apps
0
We would love your opinion on this subject, comment!x