Cars manufactured in Brazil should not suffer significant decreases in sales prices, despite the new reduction of the Tax on Industrialized Products (IPI) on automobiles, made official by the federal government since last Monday (1st).
The National Association of Motor Vehicle Manufacturers (Anfavea), representative of the sector, predicts that the setbacks should not reach 1% for most vehicles produced outside the Manaus Free Trade Zone.
The entity compiles data from light commercial models, trucks, buses and agricultural machines and highlights that the effects should be even smaller for examples of simpler engines.
“By our calculations, the potential for price reduction caused by this new drop in the IPI does not reach half a percent for 1.0 engines”, emphasizes Anfavea in a note.
Cars with smaller engines, such as those with a thousand cc, in general, have the cheapest values on the market tables.
Decree No. 11,158, published in the Federal Official Gazette, reduced the tax rate on more than 4,000 products by 35%. That is, the tax percentage charged on these items.
According to the Ministry of Economy (ME), the objective is to contribute to the reindustrialization of the country and bring legal security to the productive sector.
In the case of automobiles, the decline announced this week was 24.75%. The ME considers that the new rate equates the taxes of the automotive sector with those of other industrialized products.
“The Decree will have a positive impact on the Gross Domestic Product (GDP). It is expected to increase the competitiveness of the industry, with less taxes and increased production”, declared the ministry.
In the first half of the year, the category had already experienced an 18% drop in taxation.
“We believe this continuous reduction of the IPI is essential. But, in the current moment of high inflation and turning to the 2023 line, the reflection of the reduction may end up diluted”, evaluates Anfavea.
This dilution in the price that reaches the final consumer is a definition provided for by law, according to the professor of tax law at FGV Rio, Bianca Xavier.
She explains that it is common for manufacturers to implement this measure in an attempt to improve profitability.
“The industries, instead of passing on this benefit to the final product, can increase their profit margin. This is entirely possible. Which, in a way, also generates jobs and improves the situation of the Brazilian economy”, he analyzes.
The specialist also points out that changes in taxation do not necessarily mean cheaper goods.
“When you reduce taxes, especially the IPI, in theory, you are reducing the price of the product. It gets cheaper in final consumption. But we cannot say that the reduction will generate this impact. In Brazil, there is no pricing or parameterization. Thus, the price is freely practiced by economic agents, such as concessionaires. It is an option for those who are selling the product”, he concludes.
Source: CNN Brasil
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