Anuário Brasileiro do Setor de Locação de Veículos | 2020

10 Anuário Brasileiro do Setor de Locação de Veículos Brazilian Vehicle Rental Sector Yearbook 2020 Fake news and innocuous bills of law I n the past year we have seen a kind of media storm of false information about the vehicle rental sector. There are writers who, either out of ignorance or for less noble reasons, insist on offering opinion, analysis and forecasts that do not stand up to serious comparisons with reality. We have worked to tackle this fake news, which distorts the operations of rental companies and the renewal of our fleets via direct sales by automakers, delivered through dealers for each brand. More recently, errors in the media have also led to confusion between profitability and revenue at rental companies. There are untruths that even accuse us of tax dodging and unfair competition in articles that border on irresponsibility. It is true that direct sales are increasing and are regulated by law and standards established at CONFAZ (in addition to self- regulation by ANFAVEA and FENABRAVE, in a public document deposited in a public notary’s office). Even so, there are media sectors that offer a platform for those who are interested in distorting the process of renewing our fleets. Our sector follows the law and can only replace its vehicles after 12 months, and the average fleet age is 17 months. Together with this, the rental companies renew their fleets with the collection of all existing taxes, from production to the trading of cars. These vehicles are made available for rental and so are permanent assets held by companies in the sector. What fake news does not clarify is that accounting standards and ICMS regulation determine that the sale of permanent assets after use for the purpose for which they are intended is free of ICMS collection (as it is necessary for the development of the activity). In addition, this fake news has another undesirable effect. With an eye on tax revenue, innocuous bills of law are proposed without any knowledge of the reality of our sector. In most cases, such bills “innovate” on what is already defined in legislation and jurisprudence, with the sole purpose of trying to collect undue taxes from rental companies. ABLA, FENALOC and SINDLOCS have firmly opposed any initiative designed to curtailing vehicle rental, as limitations imposed on private initiative are generally a hinderance for any sector. It is no different for vehicle rental. Attempts at public interference in the private sector hold back the development of the country. In order for Brazil to grow again, we need the public authorities to reduce their interference in private business. Our sector is professional, serious and will never give up the principle of combating false information. You can count on us. Paulo Miguel Junior President of the Brazilian Association of Vehicle Rental companies (ABLA) and director of the National Transportation Confederation (CNT). ABLA © iuliiawhite | AdobeStock ®