The economic team is preparing a new decree that reduces the IPI (Tax on Industrialized Products) by 35%. Publication should take place this week.
It will be the third consecutive attempt, as the first two decrees were overturned by injunctions by Minister Alexandre de Moraes, of the Federal Supreme Court (STF).
At the request of the Solidarity party, Moraes suspended the measure twice, because he understood that it reduces the competitiveness of the Manaus Free Zone. Products made in Manaus do not pay IPI, unlike the rest of the country.
To reduce the resistance of the STF, the economic team will increase from 65 to 125 the number of industrial products that will continue to pay the tax, according to the report. In this way, 98% of similar products made in Manaus will not have the benefit.
Last week, several sectors of Brazilian industry published a manifesto in the newspapers criticizing Moraes’ decision and offering to “mediate dialogue between the STF and the federal government in the search for a balanced decision”.
Source: CNN Brasil
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