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The government of SP has just announced the creation of a program that aims to encourage the production of electric and hybrid cars in Brazil, generating benefits for several automakers in the country.
This Wednesday (30), the new program to encourage the production of electric cars in Brazil was announced by the government of São Paulo. Up to R$ 500 million in goods and services tax (ICMS) credits will be made available to companies that invest in electric or hybrid mobility. The initiative of the Government of SP makes up the program Green Pro-Vehicle, which aims to attract R$ 20 billion in investments in the automotive sector over the next three years, that is, until 2025. The presented model also estimates that the costs for adapting already installed production lines and building new factories of electric cars are amortized.
Check out the details of the Green Pro-Vehicle Program
Manufacturers of vehicles powered by biofuel will also be entitled to tax benefits on the ICMS for companies specializing in electric and hybrid cars. Another highlight of the SP government project is the cut in the emission of polluting gases, such as carbon dioxide, by reducing the number of cars with combustion engines on the streets.
According to the governor of SP, João Dória, the state government signed the document at COP 26 with its commitment to achieve the decarbonization targets throughout the state by 2050. Dória claims that the state administration is giving priority to the purchase of electric and hybrid cars, mainly for the education and public safety sectors.
In addition to granting tax credits, the SP government extended the term of bank guarantee or contractual obligations insurance, which are required of companies that produce electric cars. The guarantee, which is currently at 75%, will be reduced to up to 90%, and the guarantee period will be extended to 3 years.
To receive the benefit of the Green Pro-vehicle Program, a minimum investment of R$ 15 million is required, instead of the R$ 30 million currently required. In relation to the value of the credits, automakers that have from R$ 3 million to receive can join, which before was R$ 5 million.
Entities pronounce on electric car program
For Henrique Meirelles, finance and planning secretary, the measures encourage the production of eletric cars, which are less polluting, a trend that the whole world is joining.
Meirelles claims that the SP government plans to align itself with this trend and this is just the beginning. It is a way to reduce the emission of polluting gases, generate more jobs and take a bigger step towards a sustainable economy.
This current program aims to bring an update to Pró Veículo, which was launched in 2008 with the aim of preserving the environment and fostering innovation, in a sustainable format, with the installation of less polluting motor vehicle projects.
Benefits of using electric cars
The main argument in favor of electric cars is the fact that they are less polluting compared to traditional models. This type of vehicle can reduce about 33% of CO2 emissions during its useful life.
In addition, these vehicles are quieter, as the engines run on gasoline and fossil fuels are noisier, causing a much greater impact on the city.
Electric motors they are so silent that, in Europe, there is a law that obliges automakers to insert an artificial noise in their cars when they are moving at low speeds.
