Low tariffs in BH would account for less than 1% of a company's total workforce salary, according to a study by UFMG.
In the heart of Minas Gerais, Belo Horizonte is poised to make a significant change in its public transport system, with the proposed implementation of a zero-fare system. This move, currently being debated through Bill 60/2025, aims to revolutionise urban mobility, social justice, and the local economy.
However, a comprehensive study on the potential impacts of this system, conducted by the Universidade Federal de Minas Gerais (UFMG), does not appear to be readily available in current search results. While general knowledge suggests that zero-fare public transport systems often increase accessibility and mobility for low-income populations, reduce private vehicle use, and potentially boost local economies, specific findings from the UFMG study remain elusive.
In the meantime, the cost of implementing the zero-fare system in Belo Horizonte has been evaluated by Setra-BH. They predict that the cost may more than triple, considering the increase in demand and the necessary increase in supply. Yet, the prospect of a robust and permanent funding source mitigates these risks, ensuring the continuity and quality of service for the city's 7.5 million residents.
If implemented, the zero-fare system would serve the metropolitan region's largest city, Ibirité, home to around 180,000 inhabitants, and 33 other cities in Minas Gerais. The system is expected to reduce greenhouse gas emissions and potentially put Belo Horizonte at the forefront of urban mobility change, given its current status as the city with the worst traffic in Brazil, boasting more than one vehicle per inhabitant and a crowded João XXIII.
Companies with up to nine employees would be exempt from the new charge, with more than 80% of the city's companies benefiting from a reduction in costs due to this exemption. The proposed model foresees the replacement of the commuter allowance with a monthly tax of approximately R$185 per worker.
Economist André Veloso, one of the authors of the study, aims to present the complex topic of Zero Fare in an accessible manner. He believes that the system has the potential to boost the local economy by freeing up income for the poorest families and expanding access to job, education, and health opportunities.
The zero-fare system is a decision of exclusive competence of the public power, and the processing of Bill 60/2025 is currently in the hands of the Budget and Public Finance Committee of the Belo Horizonte City Council. The deadline for the presentation of the report by the rapporteur, councilor Marcela Tróia, was this Thursday (24/7), but she has sent diligences to the municipality, delaying the processing until the Executive provides the requested information.
In conclusion, while the specific findings of the UFMG study on the potential impacts of a zero-fare public transport system in Belo Horizonte remain to be seen, the proposed system holds promise for increased accessibility, reduced traffic congestion, and potential economic growth. The city's commitment to transparency and monitoring mechanisms, should the project advance, will ensure the effectiveness and continuous adjustments of this public policy.
The zero-fare public transport system, currently under debate in Belo Horizonte, has the potential to intersect various sectors, including business, politics, finance, and general-news. If successfully implemented, it may promote increased mobility for low-income populations, reduce private vehicle use, and stimulate the local economy, as suggested by general knowledge and studies. However, the specific findings from the UFMG study are yet to be disclosed, and the cost of implementation, though initially predicted to be high, could be mitigated by a robust funding source and a reduction in costs for small businesses.
