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last mo.

Brazil Study Maps Employer-Funded Path to Free Public Transit in 706 Cities

The plan replaces the vale-transporte with a targeted company contribution designed to finance universal fares without new federal spending.

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Tarifa zero custa R$ 78 bi e é viável sem imposto novo, diz estudo

Overview

  • A research team from UnB, UFMG and USP estimates nationwide fare-free service for cities over 50,000 residents would cost about R$78 billion annually and reach roughly 124 million people.
  • The proposed funding model swaps the current benefit for an employer charge of around R$250–R$255 per month for each employee beyond the ninth, projected to raise about R$80 billion a year.
  • Based on 2023 Rais data, approximately 81.5% of establishments would be exempt from the contribution under the threshold rules.
  • The authors call for pilot projects in 2026 to test implementation in metropolitan areas, noting data gaps that exclude smaller municipalities and an outdated national mobility database.
  • President Lula has expressed interest in the concept, while Finance Minister Fernando Haddad says any move must be fiscally neutral and does not require haste.