Panel SA: Alckmin says that Haddad was sensible to remove IPI from the package and pleases industrialists

The vice-president and Minister of Industry, Geraldo Alckmin, pleased industrialists at a meeting at Fiesp this Monday (16th) by stating that the government intends to end the IPI (Tax on Industrialized Products) in the tax reform and that it has come to consider the repeal of the 35% tax cut in last week’s package of measures, but then withdrew.

“We excluded [do pacote econômico] the IPI issue. It is obvious that when you have a fiscal deficit, you have to try to get rid of it, you have to look for resources. There was a possibility of canceling the 35% IPI reduction and we managed to withdraw it from the proposal. The next goal is to end the IPI in the tax reform”, said Alckmin, who was applauded several times during the meeting.

According to Alckmin, the Minister of Finance, Fernando Haddad, had “sensitivity” to sidestep the repeal of a tax with “significant value”.

Alckmin did not give details on how the government will make a project viable in Congress, but said that the economic team can take advantage of two PECs (Proposal for Amendment to the Constitution) that are already being processed to improve a new text. He stated that the discussion “is mature”.

Joana Cunha with Paulo Ricardo Martins and Diego Felix