Study Proposes Universal Zero-Fare Public Transport in Brazil Funded by Businesses
Researchers propose a business-funded universal zero-fare public transportation system in Brazil, aiming to replace the existing vale-transporte scheme without taxing the government.
- • Study proposes replacing vale-transporte with universal zero-fare public transport funded by companies.
- • 81.5% of businesses would be exempt from contribution; payments based on employee count.
- • Estimated R$80 billion annual revenue could cover public transport costs in 706 cities over 50,000 population.
- • Plan requires no federal funding or new taxes and proposes a 2026 pilot project.
Key details
A new study by researchers from the University of Brasília (UnB), Federal University of Minas Gerais (UFMG), and University of São Paulo (USP) advocates replacing Brazil's current vale-transporte system with a universal zero-fare public transportation model. The innovative financing scheme would be funded through contributions from companies based on their employee numbers, without requiring federal government funds or new taxes.
The proposed model targets 706 Brazilian cities with populations over 50,000. Notably, 81.5% of establishments would be exempt from payments under this plan. For example, a company with 10 employees would contribute for one employee, while one with 20 employees would pay for 11. The study estimates a monthly contribution of approximately R$255 per eligible employee, potentially generating R$80 billion annually—enough to cover public transport costs, currently estimated at R$65 billion per year.
Implementation could begin with a pilot project in 2026, focused on replacing fare collection with zero tariffs, which could stimulate economic activity by increasing consumer spending and reducing traffic accidents, particularly those involving motorcycles. The researchers highlight that free public transport may enhance public health and longevity, yielding higher tax revenues and safer roads.
While this study offers a blueprint for nationwide fare-free transit, other regional efforts, such as in Santa Catarina, demonstrate ongoing modernization in public transport systems. There, a technical study led by local universities is redesigning intermunicipal passenger transport to bring outdated regulations up to date, instilling transparency and real-time monitoring.
This comprehensive approach to reforming Brazilian public transportation reflects growing recognition of its social and economic importance. The zero-fare proposal seeks to elevate mobility access while sustaining funding through private sector contributions, promising a transformative impact on urban transit and public welfare.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.