After the government’s retreat last week, the Minister of Economy, Paulo Guedes, again promised a bigger cut, from 25% to 33%, in the Tax on Industrialized Products (IPI). According to him, the measure will open the door to reducing taxes on 12 other products on the Mercosur’s Special List of Common External Tariff (LETEC).
Guedes stated that the withdrawal of the cut was the result of a political agreement with governors and senators, but not fulfilled. “The political agreement stalled because governors did not reduce ICMS, as they had promised. We gave up an important revenue by zeroing the diesel tax on our side and they didn’t do it on their side. Now, we feel free to delve deeper into our movements in the tax space,” he said.
In the minister’s view, the greatest reduction in the IPI honors the promise with the industrial sector of a gradual economic opening with a reduction in the Brazil cost. “Let’s repeat the dose: as we reduced the IPI by 25% and we are going to reduce it by 33%, we will do another round of 10% in import tariffs again”, he informed.
In parallel, Guedes also promised to reduce tax on 12 other products on the Special List of Common External Tariff (LETEC). “We have already reduced 7 important taxes such as sugar, cheese, milk. We have 12 more products to download, let’s make a list to continue lowering critical prices in the economy”.
new measures
Asked about the Provisional Measure for Refis do Simples, called RELP, the minister confirmed that this and the exemption for foreign investors in the purchase of corporate bonds are measures that have already been settled, which “have to come out”. For the first, he added that the form of financial compensation will be different from what was initially proposed.
Another measure under study, according to Guedes, is the correction of the Individual Income Tax table, which would be compensated by the excess of collection observed in recent months.
“As the reform has stalled, we will possibly use part of the increase in collection to do this as well (IRPF correction) and we are analyzing along with the deepening of the IPI from 25% to 33%, as well as the reduction of the IRPJ. It’s a game because we don’t want to take fiscal risk. So, we are evaluating if we leave it to do this a little later or if we already anticipate a part”, he added.
Source: CNN Brasil
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