Brazil extends tax cut on new vehicle purchases to October 31, 2012

Article by Anita Panait, on September 1, 2012

The Brazilian government has extended a tax cut on new vehicle purchases until the end of October 2012, according to Finance Minister Guido Mantega. Tax cuts on new vehicles have helped induce sales and spike growth in the country. It was originally set to expire on August 31, 2012. The Brazilian government likewise extended the tax cuts on the purchases of washing machines, stoves and other home appliances to the end of 2012, Mantega disclosed.

The Brazilian government, headed by President Dilma Rousseff, cut the so-called IPI tax for cars in May 2012, helping to drive up vehicle sales from 257,887 units in April to 364,196 in July, according to figures from the national carmakers association Anfavea. 

On the other hand, sales of cars, motorcycles and auto parts posted a 19.8 percent year-on-year increase in June. The central bank's economic activity index rose by 0.75 percent in June, the fastest pace in 15 months, as a result of the 500 basis points in interest rate cuts over 2011 and other efforts to spur economic growth. According to the median estimate of 50 analysts surveyed by Bloomberg, Brazil's gross domestic product probably rose 0.5 percent in the second quarter, after growing 0.2 percent in the January-March period.

Topics: brazil

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries