City councilors vote against tax exemption for Fiat.
By a vote of 12 to 1, council members in the municipality of Goiana, in the Zona da Mata Norte region of the state, rejected a proposal that would have exempted the João Santos Group from R$ 3,6 million in Property Transfer Tax (ITBI) so that the State Government could acquire the land where the Fiat factory is being built. "The State Government has fulfilled all its commitments to Fiat. A matter of R$ 3 million will not derail a R$ 7 billion investment," stated the State Secretary of Economic Development, Márcio Stefanni.
PE247 – By a vote of 12 to 1, council members in the municipality of Goiana, in the Zona da Mata Norte region of the state, rejected a proposal to exempt the João Santos Group from R$ 3,6 million in Property Transfer Tax (ITBI) so that the State Government could acquire the land where the Fiat factory is being built. The area in question, which housed the Santa Tereza sugar mill and encompasses 1,4 million square meters, will be donated to the Italian automaker for the construction of the plant. With an automobile factory and an engine factory, plus the supplier network, the investment in the region's automotive hub is expected to reach R$ 7,1 billion.
It was certain that the project would be approved because 11 of the 15 members of the Goiana City Council represent the government base and support the city's mayor, Fred Gadêlha (PTB). "Until now, nobody understands what happened," a source, speaking on condition of anonymity, told Blog do Jamildo. "The transfer of the land title to Fiat depends on the land being transferred from the João Santos Group to the State Government. How will Fiat obtain financing from BNDES without having the land title, for example?" the source added.
The Speaker of the House, João Bosco (PSC), said that the allied base will try to present the project again. Contrary to what the report found, the state secretary of Economic Development, Márcio Stefanni, stated that the land in question does not correspond to Fiat's land, but rather to a neighboring area, donated by the State Government as compensation for the location where the Fiat factory is being built.
"The State Government has fulfilled all its commitments made to Fiat. A matter of R$ 3 million will not derail an investment of R$ 7 billion," he declared.
The Goiana automotive hub will consist of two factories. One is a car factory, budgeted at R$ 4 billion, with the capacity to produce 250 units per year by 2015. The other, an engine factory, in an area of 50 square meters, will require an investment of R$ 500 million and is estimated to produce 150 engines annually. The hub is expected to generate 4,5 direct jobs and 12 indirect jobs upon completion and has already received R$ 2,4 billion in financing from the National Bank for Economic and Social Development (BNDES).