Brazil Extends Auto Tax Break Again

Brazil has decided to continue to offer carmakers a break on industrial taxes through year-end. The measure was to expire at the end of this month.

The government introduced the tax break in May to revive sagging car sales. It renewed the incentive in late August as it was about to end. The lower taxes have allowed automakers to reduce vehicle prices.

In January new rules will give carmakers tax breaks for producing more fuel-efficient vehicles, adding safety systems, sourcing more parts in Brazil and investing in local engineering and research.