3/2/2010
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President Luiz Inácio Lula da Silva reaffirmed today (2) that the government will not renew more reductions in tax (IPI), a mechanism used last year to reduce the effects of global financial crisis on the Brazilian economy.
"Last week, given the clear signs of economic recovery, we decided not to renew the reductions of IPI, since our objectives were achieved," he said.
The president added that sales growth "shows that the measure was crucial to the strengthening of the sector [appliances]. The incentive ended last Sunday (31).
In the case of capital goods (machinery and equipment industries), the tax incentive will run until June 30. For cars, Lula said that the reduction of the IPI will gradually until the end of March.
Source: Agência Brazil
This article was translated by an automatic translation system, and was therefore not reviewed by people.