Brazil government to veto parts of Freight Bill, including tachograph fines and advance payment rules

The Brazilian government, led by President Lula, has decided to veto several provisions within the "MP do Frete" (Freight Bill) while amending others to secure its passage before its expiration deadline. This strategic move aims to balance the interests of truckers and the broader economy, navigating a complex legislative landscape.

Among the significant vetoes is the clause that would have permitted the use of tachographs for enforcing speeding fines, a measure truckers had opposed. Additionally, President Lula will veto the provision mandating a minimum advance payment of 70% of the freight cost at the time of hiring, with the remainder due within three business days of delivery. This decision reflects concerns about the financial burden on transport companies.

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O trecho prevê ainda a quitação integral em até três dias úteis após a entrega.

Furthermore, the government will veto an amnesty for truckers who participated in road blockades following the 2022 elections, an action taken after Jair Bolsonaro's defeat. This veto aligns with the government's stance against disruptions to essential services. In a concession to the opposition, the government also agreed to remove a fixed minimum freight price of R$5,000 from the bill. While the specific value is removed, the intention is to maintain a minimum freight price, to be regulated at a later date.

Senators are working on a wording amendment to prevent the bill from needing to return to the Chamber of Deputies, emphasizing the urgency of the situation. The MP loses validity if not voted on by Thursday, June 16. The legislation is expected to retain a clause imposing fines of up to R$1 million on companies that fail to pay the minimum freight price, with penalties proportional to the severity of the infraction.

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O trecho prevê anistiar as multas aplicadas aos transportadores de cargas que participaram de bloqueios de rodovias no fim de 2022 após as eleições, devido à derrota de Jair Bolsonaro (PL).