Councilors of Campo Grande approve exemption and subsidy of R$ 40 million to the Guaicurus Consortium
The Campo Grande councilors have approved about R$ 40 million in tax exemptions and subsidies for the Guaicurus Consortium.
On Tuesday, the councilors of Campo Grande approved significant financial incentives totaling around R$ 40 million to support the Guaicurus Consortium. This decision includes tax exemptions and subsidies aimed at easing the financial burden on public transportation services in the city. The proposed measures now await approval or rejection from the city's mayor, Adriane Lopes, of the Progressive Party (PP).
The financial benefits comprise two main components: tax exemptions, which will relieve the consortium from the payment of the Service Tax, amounting to approximately R$ 12 million, and economic subsidies intended to finance free bus passes and help maintain balance in the collective transport system. While the subsidies are not meant to incentivize company growth or expansion, they provide essential financial assistance to support the operation of public transport services amid rising operational costs.
This fiscal benefit, initially granted in 2012, continues to be justified as a necessary measure to keep bus fares affordable for the city's residents. The ongoing financial support highlights the municipal government's approach to managing transportation in Campo Grande, balancing the needs of the transport consortium with the city's financial constraints while ensuring the public has access to essential services without increased fares.