Sao Paulo state: State tax reduced by up to 25%-“IncentivAuto” announced
Sao Paulo
March 11, 2019
Sao Paulo State Government of Brazil:
On March 8, we announced an incentive “IncentivAuto” for automobile manufacturers to reduce the commodity distribution service tax (ICMS), which is a state tax, up to 25%.
Commodity distribution service tax (ICMS) reduction:
Ford announced that the San Bernardo do Campo plant (within the state) will be closed within 2019 on February 19 (Note 1).
Ford manufactures trucks and passenger cars “Fiesta” at the plant.
According to media reports, direct employment was as large as about 3,000 people, and there was concern over the impact on the regional economy (Note 2).
Brazilian Automobile Manufacturers Association (Anfavea):
Brazil’s production of passenger cars, light commercial vehicles, buses and trucks in 2018: 2,893,695
Production in the state of Sao Paulo: 46.0% of the total.
Completed car manufacturer:
Ford
General Motors (GM),
Honda,
present day,
Mercedes-Benz,
Scania,
Toyota,
Volkswagen (VW) etc (see table).
-JETRO
https://www.jetro.go.jp/biznews/2019/03/e5a22022fe1dcb4c.html
Ford Exits Heavy Truck Business in South America; Key Milestone in Global Redesign of Company
https://s22.q4cdn.com/857684434/files/doc_news/2019/02/South-America-Announcement-021919.pdf