Particle.news

Download on the App Store

Belo Horizonte Council Votes Today on Citywide Free Bus Fares

The measure would replace worker-paid transit vouchers with a levy on larger employers to finance universal access.

Overview

  • The first-round vote is scheduled for 2:30 p.m. with 28 of 41 votes needed in two rounds before the bill goes to Mayor Álvaro Damião, who opposes the plan, and several councilors remain uncommitted.
  • Funding centers on a monthly Public Transport Fee of R$168.82 per employee for companies with more than 10 workers, with microenterprises exempt, supplemented by advertising, fines and an existing municipal fund.
  • Backers estimate the system would cost about R$2 billion a year and say implementation could begin within four years, aligning the rollout with the next bus concession in 2028.
  • A Cedeplar/UFMG analysis projects R$3.89 in benefits for each R$1 invested and supporters say 80% of firms would pay less than they do for vale-transporte, while unions note workers could avoid deductions of up to 6% of salary.
  • Business groups including Fiemg and the CDL argue the levy is a new tax that would cut revenue and jobs and may be unlawful, as a separate state bill seeks to extend fare-free travel across the metro area by ending ICMS exemptions for luxury vehicles and rentals.