Industry takes a stand against Moraes’ decision to suspend IPI reduction

The National Confederation of Industry (CNI) and federations and associations from all industrial segments in the country have joined together against the suspension, determined by the Minister of the Federal Supreme Court Alexandre de Moraes, of a new government decree that reduced the tax rate by 35%. on Industrialized Products (IPI).

In the manifesto “Industry asks for an immediate solution to the impasse of the IPI”, published last Thursday (11), in the Estadão and in other newspapers, businessmen claim that the decree suspended by the STF resolved the problem of legal uncertainty and appealed to the Court for a quick solution.

“The preliminary decision of Minister Alexandre de Moraes brings an environment of uncertainty regarding the collection of the IPI, directly impacts the reduction of the price of products to the consumer, adds serious difficulties to the economic recovery”, says the manifesto of the entities.

On Monday (8), Moraes suspended Decree 11,158, issued by the federal government on July 29, which specified the products manufactured in Brazil that would have a 35% reduction in IPI.

Moraes determined that the reduction does not apply to products competing with those produced by industries in the Manaus Free Trade Zone that have a valid Basic Production Process (PPB).

It is through the approval of the PPB and the control of the execution that the companies of the Free Zone are able to receive the benefits of the region.

According to the Estadãobehind the impasse is the lack of information on the updated list of valid PPBs.

The point is that the Manaus Free Trade Zone Superintendence (Suframa) is unable to provide the list of existing, valid, inspected and regular PPBs. This absence of information hinders the reduction of the IPI.

The imbroglio around the IPI began in February, when the Ministry of Economy made a first reduction of 25% in the tax, valid even for products that compete with those from the Free Zone.

The case ended up in the STF. To get out of the legal impasse, the government edited the new decree, now suspended by Moraes.

The minister’s decision responds to an appeal by the Solidarity party, with the justification that the rule harms the competitiveness of products manufactured in the Free Zone, where companies benefit from the IPI exemption.

The party’s claim is that the decrees reduce the comparative advantage of the Free Zone in relation to products from the rest of the country.

According to the federal government, the IPI cut benefited 4,000 products not manufactured in the Manaus Free Trade Zone. In the region, home appliances, vehicles, motorcycles, bicycles, TVs, cell phones, air conditioners, computers, among other products are produced.

In the manifest, the industry says that the decree that is suspended reduced the IPI by R$ 15.6 billion and preserved the competitiveness of products from the Free Zone.

Economy Minister Paulo Guedes met with Moraes and other STF ministers to seek a way out of the impasse. Sought, the Ministry of Economy declined to comment.

Source: CNN Brasil

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