Guedes promises to end IPI in new term and take Amazon and Tesla to Manaus

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The Minister of Economy, Paulo Guedes, said this Thursday (8) that the plan for a possible second term of President Jair Bolsonaro (PL) is to end once and for all with the IPI (Tax on Industrialized Products) and make the Amazon survive with green credit.

He participated in an event organized by the São Paulo Commercial Association, with micro and small entrepreneurs from the east side of São Paulo.

Even without being crowded, the Juventus club hall received the minister warmly. The audience applauded enthusiastically as Guedes repeated plans for privatization and tax cuts.

He said that if Bolsonaro is reelected, he will reindustrialize Brazil with cheap energy.

Earlier, to the automotive sector, Guedes also promised to zero the IPI tax, which he called “excrescence”.

“It is not possible to be taxed before starting to produce,” he said. “This tax has to end.”

The minister also stressed that it is necessary to contain criticism, in his words “stop throwing stones at Brazil”, but guarantee that it will be a supplier of energy and food.

Not to mention the delicate negotiation that left out the Manaus Free Trade Zone to unlock last month’s 35% IPI reduction, Guedes said he will make the Amazon survive with green credit.

In August, a decree increased to 170 the number of products in the Free Zone that had their rates restored. Among the items are soda syrup, lighter and battery charger.

The companies claimed that the IPI cut previously proposed by the government would make production in the region unfeasible.

According to Guedes, by ending the tax, the plan for a possible new Bolsonaro term includes changing the main activity in the region. “We are going to transform the Amazon: instead of living on IPI credit, it will live on green credit, on the preservation of environmental resources, which I estimate at R$ 100 billion.”

The minister also refuted criticism that the government has taken populist measures to win the election, such as cutting ICMS on fuel and energy and increasing Auxílio Brasil on the eve of the election.

“Populist government? No, it’s an austere government. We are making BNDES return the money that went to Angola and Cuba. We have not increased R$1 in future debt. Inflation is going down, growth is increasing and unemployment will reach 8 % at the end of the year.”

He also said it would be important to set up an Amazon headquarters on Amazon and 30-year tax exemption.

“Tesla will make electric cars. Everything that is green and clean will go there. Manaus will be the capital of the green and digital economy.”

Not to mention President Jair Bolsonaro’s (PL) new campaign promise to bring Auxílio Brasil to R$800, the minister recalled measures taken during the pandemic and also said that the government had already planned to create a basic income since before the Covid.

“We created Emergency Aid during the pandemic. We protected and digitized 68 million Brazilians. We sat down with entrepreneurs and created programs, such as Pronampe. Instead of working eight hours, we reduced it. We have 11 million people whose jobs were preserved.”

Guedes also took advantage of the event to praise Bolsonaro’s candidate for the government of São Paulo, Tarcísio de Freitas. “The food arrived in the city because Tarcísio was there, talking to truck drivers. He created a new model of auctions, which are auctions with commitment. sells everything in front: airport, highway.”

He also said that the former minister will be a good name for Planalto in the future. “Tarcísio was an example, he will change the life of São Paulo, with his ability. And he will be an excellent president of the Republic later on.”

Collaborated with Ana Paula Branco

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