In Addition to Strengthening the Construction Industry, the New Federal Government Program That Replaces Minha Casa Minha Vida Should Offer Lower Interest Rates for Families in the Two Largest Regions of Brazil
The Federal Government announced this week that the Minha Casa Minha Vida program has been definitively replaced by the Casa Verde e Amarela program. With this change, the construction industry is expected to strengthen in the North-Northeast regions, where these housing complexes are largely built, in addition to a decrease in interest rates for the regions. However, President Jair Messias Bolsonaro vetoed the provision that extended to the new program the tax regime applicable to construction companies that are subject to the Minha Casa Minha Vida rules, which left the sector frustrated.
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The President of the Construction Industry Union of the State of Ceará (Sinduscon-CE), Patriolino Dias Spoke on Behalf of the Union:
“We are very optimistic about this program that replaces Minha Casa Minha Vida, but we regret the removal of the RET (Special Tax Regime). We are closely monitoring this, but I believe the program will take off”
The tax regime already provides for a unified collection of taxes that equates to about 4% of the monthly revenue collected under the construction contract.
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For the Vice President of the Federation of Industries of the State of Ceará (Fiec), André Montenegro, Bolsonaro’s Veto on the Replacement of Minha Casa Minha Vida Was What He Called a “Negative Surprise”
“A high-end apartment pays 4% tax and a low-income house will now pay 6.7%, which is very detrimental to the program. Now we have to mobilize to overturn this”, Montenegro reported.
This matter was published in the Wednesday (13) edition of the Official Gazette of the Union. After publication, lawmakers need to decide whether or not to maintain the presidential veto decision in a session with Congress. To reject the veto, a considerable number of votes from deputies and senators is necessary.

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