Industry representatives are beginning to express the sector’s annoyance at the possibility of repealing the 35% cut of the IPI (Tax on Industrialized Products) adopted by the management of Paulo Guedes. The measure, which may appear among the first initiatives of the Minister of Finance, Fernando Haddad (PT), has been treated in the sector as a defeat.
“It would be a setback for the government to revoke the ordinance that reduced the IPI after a great debate on the subject, where convergence was sought for the decision taken, including the Manaus Free Trade Zone. In addition to having a great inflated impact of more than 4,500 industrial products, goes against what Minister Alckmin made very clear in his inauguration speech, which is the urgent need to reindustrialize Brazil”, says Ricardo Roriz, president of Abiplast (plastics sector).
José Veloso, president of Abimaq (association of machine manufacturers), argues that administrative reform should be carried out first to reduce the size of the state with a cut in expenses. “The tax burden is much higher on goods than services, and this harms the poor, who consume less services. The IPI harms those with less income, making products more expensive, that is, the poor pay more than the rich”, he says .
“It will be a pity if the IPI reduction is revoked. Either Brazil changes its outdated form of taxation or we will very quickly see the end of the industrial sector in the country”, says Humberto Barbato, president of Abinee (electrical and electronics industry).
Synesio Batista, from Abrinq (toys), says he is in Hong Kong for the sector fair, and was asked if it is true that there would be a change in the IPI in Brazil. “In China, they are aware of the debate and are rooting for the government to make this return because, for them, it would represent a gain in competitiveness in relation to Brazil. We understand the reasons, the government is looking for revenue, but the IPI is an old tax, disloyal and unequal”, says Batista.
Abihpec (of hygiene and perfumery products) claims that the resumption of the rate would cause an inflationary effect with a potential retraction in consumption. “As there is an expectation of discussing the tax reform even in the first hundred days of government, the moment is not appropriate to increase the tax. It would have a negative effect on our sector, a cascading effect that may not be beneficial for the economy as a whole. whole”, says the association in a note.
Joana Cunha with Paulo Ricardo Martins and Diego Felix
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