Hey, Collor?

More than 20 years of regression! That's what the measure announced by decree 7567 last week represents in practice, increasing the IPI tax rate for imported cars. It's enough to remember that it was in the early 90s that the government opened the country's doors to vehicle imports, lowering this tax rate. This initiated a new cycle of consumption in the national automotive market, marked by healthy competition that provided access to technology produced by developed countries and pressured manufacturers of the old "clunkers" to offer safety and comfort features comparable to the quality of cars produced abroad.

Now, under the pretext of protecting the national industry, ministers Guido Mantega and Fernando Pimentel have decided to increase by up to 30 percentage points the IPI charged on cars that do not comply with a minimum nationalization index (60%). Officially, the surcharge has been in effect since Friday (16), but the Ministry of Development is still analyzing which manufacturers will be affected - admittedly all those that offer high-level cars at competitive prices.

In reality, the measure announced by the federal government is merely yielding to the lobbying of a restricted group of interested parties (Fiat, VW, GM, and Ford), all gathered under the umbrella of Anfavea. And, curiously, despite having assembly plants in the country, they also import vehicles from countries like Mexico and Argentina. Even producing vehicles in these countries, that is, without boosting the national production chain (companies producing raw materials and auto parts) or generating jobs here, they will not be harmed, as they benefit from agreements exempting them from this tax.

What is behind the increase in IPI (Brazilian tax on industrialized products) for imported cars if imports are one of the main factors inhibiting price adjustments in such a heated market? In the previous situation, domestic automakers did not have the margins to raise the prices of popular cars. By increasing them, these values ​​would become very close to those of imported models. And, of course, the domestic product would lose market share by offering less for more. Since, with the real appreciating against the dollar, there is a surplus of vehicles in several countries that, to clear their stocks, offer super-equipped cars at prices competitive with emerging countries.

In order to curb the effects of the measure, Abeiva, which represents importers, has prepared a letter to be sent this week to President Dilma Rousseff requesting a review of the measure, which, according to the letter, represents an increase of 120% to 428% over the rates currently in effect. Data shows that cars imported by the 27 brands that do not have factories in Brazil represent only 5,8% of the Brazilian market in the period from January to August of this year. According to the association, the change in the automotive regime harms consumer interests, basic international trade norms, and the Brazilian Constitution.

One thing is certain: while the old dynamics pushed prices down, they also forced the national industry to evolve and keep pace with the technological development of the developed world. Following this logic, it's easy to assume that if the government truly wanted to help national production and the modernization of our vehicles, it should reduce the tax burden on those who have factories here. And then, yes, it would stimulate investment in technology and employee training. This is how we would have more jobs, more domestic sales, better-equipped cars, and even cars in a position to be exported to markets accustomed to quality products.

Luiz Fernando is a journalist and Director of Brasilia 247.