Highlights: Auxílio Brasil may include R$2,2 million in August; Deadline for registering assistance for taxi drivers ends today; Government cuts IPI for cars and more

The news that started the week was the newly created aid from the federal government with resources from the so-called electoral PEC. The deadline for city halls to send data on taxi drivers who can receive new federal aid of 1.000 reais per month ends this Tuesday, 2.

In addition to increasing the installment to 600 reais, Auxílio Brasil may have an important change. The government plans to eliminate the waiting list for benefits by adding around 2,2 million households in August.

In today's topic, see also the reduction in the IPI (Tax on Industrialized Products) on goods manufactured in the country and check out the new inflation forecast.

Mass inclusion in Brazil aid

The Auxílio Brasil payroll for August likely included about 2,2 million families, technicians at Brazil's Ministry of Citizenship said. The official number of new registrations in the program will be communicated by the department at the end of the week.

Mass inclusion will be possible thanks to resources from the Electoral Constitutional Amendment (PEC), which released more than 26 billion reais for Auxílio Brasil alone. In addition to increasing monthly installments to 600 reais until December, the government wants to increase the number of people served.

Initially, the document provided for the extension of benefits to an additional 1,6 million households, but sources said the objective was to completely eliminate the waiting list. Given rampant inflation, the number of people in need continues to grow each month.

If the queues are really zero, around 20 million vulnerable families will be served from this month onwards.

The August calendar starts on the 9th and continues until August 22nd.

BEm taxi driver: Deadline for sending data ends today

The government extended the deadline for municipalities to send the data of taxi drivers registered in their databases until 19pm today, August 2nd. This information will be used to select the beneficiaries of a monthly subsidy called Taxista Emergency Benefit (BEm-Taxista).

The deadline set by the Ministry of Labor and Pensions (MTP) ended on the 1st of yesterday, but the authorities managed another day. The payment schedule remains the same, starting August 16th.

BEm-Taxista will be paid in 6 consecutive monthly installments of R$1.000, but deposits in August will fall along with deposits in July. Only one grant can be withdrawn per professional, regardless of how many vehicles they own.

This assistance will help holders of concessions, permits, licenses or authorizations granted by the municipal or district administration to effectively carry out professional activities and to actively register until May 31st. You must also have a valid National Driving License (CNH) and CPF.

“It is the responsibility of the City Council to provide information about taxi drivers. Any questions about the inclusion of taxi drivers on the City Council's notification list should be directed to the City Council”, explained MTP.

Markets expect inflation to rise in 2023

The central bank's focus bulletin released yesterday showed that the market again raised its inflation forecast for 2023, for the 17th consecutive time, from 5,30% to 5,33%.

On the other hand, this year's projection fell from 7,30% to 7,15%, reflecting the reduction in taxes and ICMS restrictions. Still, these percentages are well above the government's target.

The Ministry of Economy established an inflation target of 3,50% for 2022, with a tolerance of plus or minus 1,5 percentage points. The target for next year is 3,25%.

The projection of the basic rate (Selic) for 2022 remained unchanged at 13,75%. By 2023, the market expects this level to reach 11%, compared to the previous forecast of 10,75%.

Government reduces IPI on more than 4 thousand items

The federal government reduced the Tax on Industrialized Products (IPI) on goods produced in Brazil by 35%. The change will make around 4 cell phones, computers, household appliances, shoes and other industrial products cheaper.

The same decree also reduces the tax on vehicles such as bicycles, cars and motorcycles from 25% to 18%. The document excludes the main products produced in the Manaus Free Trade Zone.

The Ministry of Economy said in a statement that the tax cuts aim to increase the competitiveness and production of Brazilian industry.