Lula Cuts Car Taxes to Revive Brazil’s Ailing Auto Sector (1)

President Luiz Inacio Lula da Silva rolled out a series of tax breaks to make low-priced vehicles more accessible for working families, as he looks to breathe fresh life into Brazil’s battered manufacturing sector.

The government on Thursday unveiled a package of tax reductions on vehicles that cost 120,000 reais ($23,875) or less, measures it projects will reduce sticker prices on some cars by nearly 11%.

The reduction “will take into account the social aspect, it will not make discounts for an expensive car,” Vice President Geraldo Alckmin said at the presidential palace in Brasilia, after he and Lula met ...