São Paulo offers tax breaks to boost auto manufacturing
São Paulo state government in Brazil
has kicked off IncentivAuto, an incentive program promising to reduce the state VAT (ICMS) tax rate by up to 25% for vehicle manufactures investing at least 1bn reais (US$262mn) and generating at least 400 jobs in the state.
The discount will be proportional to the investment volume, with a ceiling set at 10bn reais.
Among the potential beneficiaries of the program could be the upcoming buyer of the Ford factory in São Bernardo do Campo of which the US automaker said it would be closing
later this year. Three companies are eying the factory, one of which is Brazilian car manufacturer and distributor CAOA.
With a total of 13 automakers and 20 factories, São Paulo is the auto manufacturing hub of Brazil.