Clipping of news on Brazilian Culture, Law and Citizenship
28/06/2013
This article was translated by an automatic translation system, and was therefore not reviewed by people.
BRASILIA, May 27 (Reuters) - No room to accommodate tax cuts taxes, the government announced on Thursday a partial recovery of IPI rates of home appliances and furniture, for the period from July to September, and indicated that it will not more exemptions going forward.
The government had been, since 2011, giving tax breaks to some productive sectors to stimulate consumption and boost the economy. This policy, however, resulted in a great loss of revenue, generating critical economic agents who view with concern the situation Brazilian tax.
"We can not afford to increase the tax exemptions at this time. Now have to reap the fruits of exonerations that have been implemented and are ongoing and new exonerations are deferred to a frustration that we have not in the collection," said Finance Minister Guido Mantega , announcing the recovery of IPI rates.
In recent weeks, after the rating agency Standard and Poor's risk rating Brazilian put in perspective the negative mainly due to the tax issue, the government has stressed that chase a primary surplus of 2.3 percent of Gross Domestic Product (GDP ) this year.
The partial recovery of IPI for white goods and furniture for the period between July and September will generate a tax revenue of 118 million dollars to the coffers of the Treasury, the minister said.
Tax on Industrialized Products (IPI) of the stove, which was 2 percent, up 3 percent from the first of July. For the abs, the rate climbs 3.5 percent to 4.5 percent (the rate is 10 percent original), and the rate of coolers and refrigerators spends 7.5 percent to 8.5 percent.
Mantega predicted that the tendency of government is to raise the rates of these products for original percentage from October. He also said that manufacturers and retailers, who met on Thursday, pledged not to raise prices, even with the tax increase. "Retailers and production sector will make an effort to accommodate rate increase on current prices so as not to hurt sales and not increase inflation, "he said.
Were also partially elevated IPI rates of the mobile 2.5 percent to 3 percent; panels from 2.5 percent to 3 percent; laminate of 2.5 percent to 3 percent; luminaires of 7.5 percent to 10 percent, and wall paper of 10 percent to 15 percent.
GROWTH
Despite all the tax benefits granted by the government, the Brazilian economy continues skating. On Thursday, the Central Bank reduced its forecast for GDP growth of 3.1 percent to 2.7 percent this year.
Mantega declined to comment on the change in the forecast BC, and said only that the government must strive to enable growth of 3 percent this year.
In addition to predicting lower growth, the Fed projected inflation higher, 6 percent in 2013, if interest rates remain stable at 8 percent per year. The previous forecast was for inflation of 5.4 percent.
"The important thing for us is that the inflation targets set are not exceeded. Same with the prediction that BC does mean that we are within the target ceiling another consecutive year", said Mantega.
Source: reuters.com
Our news are taken in full from our partner sites. For this reason, we can not change the contents of the same even in cases of typos.
This article was translated by an automatic translation system, and was therefore not reviewed by people.