The twin purposes of the legislation are to reduce toxic emissions from private transport on the one hand and to raise revenue to boost public transport alternatives on the other. Of particular interest too is the increased use of bicycles.
For many years such an approach has been debated in Congress before finally being approved. However, local municipalities have until 2015 to comply and launch their own tailored schemes. This means that the majority of plans will only be in place after the World Cup in 2014.
The new Law will apply to all ‘1600 plus’ towns and small cities in Brazil with populations over 20,000. Any one of them which does not have its local scheme in place by the deadline can incur financial penalties from central Government.
Some see the new Law as being not just excessive but to some extent contradictory as it seems to work directly contrary to other Government initiatives. For example, the National Confederation of Municipalities points out that Brasilia is simultaneously boosting the sale of cars to help the vehicle industry counter the global recession while punishing vehicle usage in urban areas. The organisation’s President, Paul Ziulkoski explained:” While the government encourages cars, this new law authorises the levying of taxes to limit their movement in the cities”.
He went on to explain that there is the strong possibility of conflict between cities as people struggle to have their vehicles registered in areas with comparatively cheaper taxation.
The new Law has obvious implications for investment opportunities in Brazil. There will be clear knock-on effects regarding real estate construction and development costs as well as day-to-day transport expenses for companies and individuals alike.
No comments:
Post a Comment