Clipping of news on Brazilian Culture, Law and Citizenship
21/01/2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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On Monday (19), the minister Joaquim Levy announced four measures they intend to raise over US $ 20 63 billion in taxes in 2015
The Finance Minister, Joaquim Levy, during a press conference in Brasilia (Photo: Wilson Dias / Agency Brazil)
Since it was announced as Minister of the second term of President Dilma Rousseff Finance, the expectation was that the first steps of Joaquim Levy would bring a tax increase. On Monday (19), the press was convened in Brasilia to finally know what are the adjustments in Levy package - he did not call package.
There are four measures aimed at increasing the confidence of the national economy, with the government spending less and grossing more. Confirming what had advanced the column Felipe Patury, he took to make the announcement before leaving for Switzerland, where he will attend the World Economic Forum, from the evening of Wednesday (21). Much of the tax increases enter into force on 1 February. With this, the ministry aims to raise US $ 20 billion more only 63 in 2015.
Check out what taxes will change:
1: Cosmetics
The excise tax (IPI) in the cosmetics sector is the target of the first decree of the Ministry of Finance. The wholesale sector IPI is charged in the cosmetic field, as is already the case in the industrial sector. According to Levy, the measure has little effect revenue collection, but it makes the tax "more homogeneous and transparent." It is estimated that the measure will increase the collection at $ 381 million from June to December this year, said Jorge Rachid, Secretary of Internal Revenue, who attended the announcement.
2: Import
The second measure is also corrective. With it, the Social Integration Program (PIS) and the Contribution to Social Security Financing (COFINS) will be adjusted on imports. The fix is from 9.25% to 11.75%. The idea is that domestic production is not affected, since it excludes from the tax calculation based on the ICMS import.
3: Financial Transactions
The third measure restores the rate of Tax on Financial Operations (IOF) on loans. The tax goes from 1.5% to 3% per year. The minister said the move also keeps the tax of 0.38% on loans. Only with this change, the government plans to raise US $ 7.38 billion in 2015.
4: Fuels
The fourth decree increases the PIS / COFS and Intervention Contributions in the Economic Domain (Cide) on fuel. The increase in two sets tax corresponds to an increase of R $ 0.22 for petrol and £ 0.15 for diesel. "The Cide was in the beginning (early 2000s) of R $ 0.28. It would be (today) equivalent to a rate of £ 0.50. Although increasing, it is significantly lower than at the beginning," said Levy .
How Cide needs 90 days to change, the increase will be, for now, just in PIS / COFINS and then the value will be redistributed between the rates for the breakdown between states and municipalities will be more homogeneous. It is expected to raise US $ 12.18 billion this year. "If decided to increase the PIS / COFINS and Cide in such a way that there was any lifting revenue for states and municipalities," said Levy.
According to the minister, the measure does not necessarily correspond to an increase in fuel prices, as Petrobras can lower the price charged by the distributors. "The increase in gasoline prices is not a decision of the Ministry of Finance, belonging to Petrobras determine the fuel price policy," Levy said.
He continues, the effect on inflation is difficult to measure at the time, but he said he believed that with the increase in confidence in the economy, the tendency is for the long-term yield curve download. This will reflect in all sectors including in the credit market - even if the price increase to the consumer at first.
Source: Season
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This article was translated by an automatic translation system, and was therefore not reviewed by people.