Clipping of news on Brazilian Culture, Law and Citizenship
02/07/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Without an extension, IPI lower for white finish on Saturday.
Cutting taxes represents a loss of r$ 684 million in revenue.
The finance minister, Guido Mantega said on Friday (29) will be extended for another two months to reduce the rates of tax (IPI) for white goods such as refrigerator and stove. Without the extension, the IPI lower end on Saturday.
The government also extended by another three months, the reduction of the IPI rates for furniture, veneer, wallpaper and light fixtures. The announcement came after the minister to meet in the afternoon Friday in Sao Paulo, with industry representatives from appliances, furniture and retail.
"It's good that people enjoy because it is ending. It's good to shop personnel, "said Mantega aos journalists.
The minister also informed that the new decree will try to include the reduction of 5% to zero ad IPI rate for wood panels. The "trial", according to the minister, is because the decree with the ads in this sixth was ready, and need to be amended to include the item. Mantega assured, however, that the product will also have zero IPI until September.
The reduction of PII to the panels was a request from the furniture industry according Mantega, once the item is considered a major raw material in furniture.
Mantega also announced the extension until the end of the year, the exemption from collection of PIS and Cofins on the masses, it would until this Saturday. The rate, which was 9.25%, was reduced in December last year. The exemption of PIS / Cofins on the bread had valid until December this year.
Counterparts
Mantega said that with the extension of lower taxes, both industry and retailers have pledged to keep the pass-through tax reduction to consumers and to maintain employment levels, with expansion. The business has signed a commitment to maintain the level of nationalization of products.
The entrepreneurs present at the meeting reported that, with the reduction of taxation, sales of white goods rose 22% from January to May compared with the previous year. In the furniture sector, was up 2.5% in industrial production in the year. The industry believes that with the extension of the incentive may grow up to 6% this year.
Tax waiver
The tax reduction would cost the government a loss of r$ 684 million in revenue. The tax waiver on the white line should be around R$ 180 million for two months. For the furniture, not including the panels, the waiver must total R$ 197 million.
Another r$ 22 million represents the tax cuts fixtures rolled wallpaper. Already exempt from PIS and Cofins over the masses must total r$ 285 million.
Reasons
The reduced rate for white line was announced initially in the first stage of the financial crisis in 2009. Later, he returned to be implemented at the end of last year, was renewed in March this year for another three months.
Behind the reduced charge, is the government's intention to combat the effects of international financial crisis in the economy and stimulate the Gross Domestic Product (GDP), which feels the impact of international financial crisis. In the first quarter of this year, according to the Brazilian Institute of Geography and Statistics (IBGE), growth, calculated over the last three months of last year was only 0.2%.
Entrepreneurs, however, pushed for the renovation. In the last 20 days, the president of the National Association of Manufacturers of Consumer Electronics (Eletros) Lourival Kiçula, met with the executive secretary of the Ministry of Finance, Nelson Barbosa, to apply for renewal of the measure.
Treasury expects growth above 2.7% in 2012
Asked about economic growth in the year, the finance minister said remains optimistic. "I'll talk to the projection of the second half. In the second half, we will be growing 3.5% to 4%, "Mantega said.
On the growth of GDP in the year, Mantega said the goal is to stay "above what we grew last year," when was 2.7%.
Asked if the Treasury's projections for the year would not be too optimistic, since the Central Bank itself (BC) has projected that the country's growth in the year will be 2.5%, the minister said he believed that all are being applied by the government will help the resumption of growth.
"There is optimism is realism. In fact, we have to work in order to accomplish these goals, "Mantega said. "If we work, if we continue reducing interest rates, the spreads of the banks - this is already happening - if we can increase the credit, if we continue reducing taxes and increasing the competitiveness of Brazilian industry, we can achieve more ambitious goals," completed.
Source: G1 News
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This article was translated by an automatic translation system, and was therefore not reviewed by people.