Environment reporting and taxation
Environmental data must be reported, and, in some instances, additional charges or taxes are imposed. Common examples include payment of extra charges for packaging to a recycling organization and tax for volatile organic compounds.
Brazil specifics
Inovar Auto is a program to encourage innovation, support technology development, safety, environmental protection, energy efficiency and the quality of Brazilian vehicles and auto parts. It is an action taken by the federal government in order to stimulate investment in the domestic auto industry. It is estimated that the program will raise more than R$ 50 billion in investments.
The measures introduced by the Inovar Auto Program are part of the Plano Brasil Maior industrial, technological, and foreign trade policy. The plan provides tax benefits in relation to industrialized products (IPI) for companies that invest in and stimulate innovation, research, and development within Brazil.
The program provides a discount of up to 30 percentage points in the IPI for cars produced and sold in the country. To qualify for incentives, however, applicants must meet a number of conditions, which will gradually increase from the beginning of the program.