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22 August 2018 | AutoData INDUSTRIAL POLICY » THE ABC OF ROTA 2030 Not enough all the hard-work for the approval process of Rota 2030 a separate chapter begins now: the Provisional Measure’s approval process in the mixed commission of the National Congress, formed by 13 deputies and 13 senators. They could present amendments to the text of the PM - and they are no less than eighty. Although entirely amenable to analysis and veto by the rapporteur, the content of several amendments is terrifying and, in most cases, changes completely the basis and logic of the automotive regime as it was designed and negotiated. For example: Another one, inexplicably, restrains the R&D incentives to the hybrid and electric car sales with discounts for taxi drivers. Another excludes the part regarding the R&D incentives from the text. Three parliamentarians suggest a loophole to allow imports of up to twenty units per year without the company paying the 20% fine for not committing itself to efficiency and safety goals. There are more bizarre amendments , such as amendments suggesting the increase of the R&D benefit from 30% to 60%, 80%, 100% and up to 160%, prohibition of the commercialization of combustion vehicles from 2025 and 2040, change in accessibility rules in buses for disabled people, alteration in the policy of the automakers’ share for their dealers, inclusion of motorcycles in the automotive regime, maintenance of employment level as a mandatory condition for companies, exclusion of imported vehicles from Rota 2030, information (by the automaker) of all the parts that are used to produce the vehicle and its individual values and even exclusion of the IPI reduction for hybrids and electric vehicles. Two amendments include (in Rota) the extension of benefits to the manufacturers installed in the Northeast and Center-West regions of Brazil. And if that were not enough, there are proposals that have absolutely nothing to do with the automotive industry, such as the payroll exemption for the furniture, footwear and travel goods industries. Theoretically, most of the amendments should be denied, but as the National Congress reasons from an absolutely peculiar logic of its own, it is impossible to assure that Rota 2030 is immune to the application of appendices that distort the regime. The craziness of the eighty amendments two amendments simply exclude the ex-tariff benefit for the auto parts that are not produced in Brazil, claiming that this would affect the Brazilian industry.

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