Anac proposes measures to address the rising price of fuel.

Following the Chilean government's announcement of a historic increase in gasoline and diesel prices starting Thursday, along with a series of mitigating measures for specific sectors, the National Automotive Association of Chile (ANAC) presented a series of proposals to help address the rise in prices of both fuels, a situation it described as particularly difficult for the middle class and those who rely on transportation for work. The association explained that the initiative aims to complement the measures announced by the government, focusing on technologies that consume less fuel and on electric mobility. "We know that each increase in gasoline directly impacts the budgets of Chilean families and thousands of workers. As an association, we want to contribute ideas that can reduce fuel costs, allowing more people to gradually access vehicles that consume less fuel and contribute to a cleaner and more efficient transportation system," said Diego Mendoza, Secretary General of ANAC. He added that "at a time when many families are concerned about how they will make ends meet, it is crucial that public policies focus on alleviating daily expenses and building a more just and sustainable transportation system. That is the spirit of this set of proposals that we are making available for discussion." **Proposals:** The proposals are focused on two main objectives: facilitating access to more efficient vehicles for individuals and supporting freight and bus transporters, which are essential for ensuring that goods reach all of Chile. In this way, ANAC proposes to incorporate four additional measures into the bill that will be processed in Congress, in addition to those proposed by the Treasury, to encourage electric mobility. * **Reinstatement of the $0 circulation permit program for electric and hybrid vehicles:** Currently, this program is only partially funded (25%) for these technologies, and the funding is scheduled to increase to 50% next year. ANAC suggests maintaining the program at $0 for all vehicles of these technologies sold from January 1, 2025, onwards. * **Elimination of the import tariff on all electric and hybrid vehicles:** Currently, these vehicles are subject to a 6% import tariff, compared to 0% for conventional vehicles, solely due to the origin of their components. * **Repeal of the luxury tax on hybrid, electric, plug-in hybrid, and electric technology vehicles.** * **Elimination of VAT (Value Added Tax) for electric and hybrid vehicles:** Following international experience, eliminating this tax would make these vehicles more accessible to the population for more efficient use, according to ANAC. **Trucks and Buses:** Regarding the truck and bus segment, ANAC stated that transporters should benefit from this situation, given that they transport over 94% of the national cargo, directly linked to the national and family economy. Therefore, it proposes the following measures: * **Incentive for the renewal of the truck fleet with more efficient technologies:** A cash contribution for the renewal of an old truck with newer, more efficient technologies available in Chile since the beginning of this year (Euro 6). * **Incentive for the renewal of intercity buses (long-distance buses, not public transportation):** A cash contribution for the renewal of an old bus with newer, more efficient technologies that consume less diesel and are less polluting, available in Chile since the beginning of this year (similar to the proposal for trucks). ANAC believes that these measures will provide small and medium-sized transporters with concrete tools to address the rise in fuel prices, reduce their costs over time, and, at the same time, contribute to improving air quality in the cities and towns they travel through.