Brazil's Lula administration studies 'zero fare' public transport for potential fourth term

Brazil's government is actively exploring the concept of 'zero fare' public transport, a measure that, while complex, is being considered with significant interest for a potential fourth term under President Luiz Inácio Lula da Silva.

Giancarlo Gama, an advisor in the National Secretariat of Urban Mobility at the Ministry of Cities, stated that structuring such a system presents considerable operational and fiscal challenges. However, he emphasized that the government is "looking at this with great affection," indicating a serious consideration of the proposal.

The idea of universal free public transport was not explicitly included in the government's current plan due to the need for in-depth discussions on sustainable, permanent funding sources. Gama highlighted potential avenues for financing, including taxing the negative externalities of individual transportation and reforming the employee transport voucher system. He also mentioned the possibility of redirecting funds from fuel intervention taxes (Cide) to the public transport sector.

Discussions around reforming the employee transport voucher system are considered particularly relevant for establishing a stable funding base. Models under evaluation involve contributions tied to employee numbers or company payrolls. The government's commitment to increasing investments in public transport infrastructure and operational funding remains a key focus.

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We are talking about zero fare. Structuring this has great complexity, but, certainly, President Lula's government has looked at this with great affection.