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Economic indicators

With falling sales rise after IPI, industry ask new tax cut

01/04/2013

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

 



Stores increase passed on the IPI and demand fell by 10%

Government on Saturday renewed incentive vehicles sector

RIO - After extended until December for the term of the Tax on Industrialized Products (IPI) for small vehicles, the government will receive similar claim in another sector: the appliance. The exemption of IPI in 2012 helped reduce the price of refrigerators, stoves, washing machines and automatic "tanquinhos" (semi-automatic washing machines) and boost sales of white goods. But, as the rates go resuming their normal levels, the electronics industry is already feeling the losses estimated at up to 10% in sales in the first two months of the year, and their representatives intend to once again ask the government to tax is maintained it is, instead of returning to the levels in June earlier.

Compared to 2011, the industry recorded a growth in sales of the four white goods to retailers. The high was 16% in refrigerators and washers in semiautomatic (the tanquinhos), which rose from 6.2 million to 7.3 million and 3 million to 3.5 million, respectively. Sales of automatic washing machines increased 18%, from 4.2 million to 5 million, and the stoves had the most expressive high of 20%, from 5.5 million to 6.6 million. ELETROS did not provide data for the first two months of this year.

The president of the National Association of Manufacturers of Electric and Electronic Products (Eletros), Lourival Kiçula, attributes the good sales performance of the exemption period, initiated by the government in December 2011. The IPI normal stove, 4% and washboard abs, 10% were cleared by the government on December 1, 2011. The tax coolers of 15%, fell to 5%, and on washing machines, from 20% to 10%. From February 1, the rates returned to normal, except for products that use less electricity and are labeled with the seal of energy efficiency. These are at intermediate rates of 2% to tanquinhos and 7.5% for stoves and refrigerators. The washing machines were maintained at 10%.

- When you think it will end? - He asks, referring to the temporary reduction in the tax. - We're not discussing (with the government), but this is the intention. Minister Mantega has signaled that rates could not go back to the old level. We would like that very much, and we will wait until the end of April to check the sales performance and have arguments to defend the maintenance of this measure.

Kiçula argues that the sector has increased the level of employment and also had a positive impact among parts suppliers:

- The percentage of national content in the white line, ie, motors, compressors, steel and aluminum, among others, is almost 100%. The factories that produce for the white line opened 5000 direct jobs.

According to him, this January has recorded "a decline" in sales compared to last year, between 5% and 10%, and February is likely to repeat the performance.
- We think that the IPI is now at a level appropriate. But 20% to a washer, for example, is very high. It is an essential product for family life. Previously it was not, it was a luxury item, but it was outdated classification over time.

The retailers Casas Bahia, Ricardo Eletro, Ponto Frio and Lojas Americanas were contacted by GLOBE, but declined to comment on the effects of IPI reduction in sales of white goods.

The Ministry of Finance also not commented on the proposal to make permanent the Eletros exonerations.

In the calculations of economist Fabio Bentes, the National Trade Confederation (CNC), about 25% of 8 percentage points of growth in retail sales last year were smaller effect of IPI. As the IBGE gathers sales statistics in groups, without registering item by item, Bentes uses the data of furniture and appliances, which are included in the white goods.

- The line of furniture and appliances had the best performance in retail in 2012, up 12.2% compared to the overall average of 8.4%. Counting the discount white line is diluted among a basket of home appliances, we calculate the impact of release by one percentage point.
This year, with the removal of the tax and changes in the economic outlook, as the tendency for high interest rate, it is expected that the growth of the segment is 8.8%, and retail in general, of 6.9%.

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Source: The Globe - Online

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