Published on July 29, the decree that reduces the Tax on Industrialized Products (IPI) – taxation that is levied on all production of national consumer goods – is already in force and will, in practice, reduce the price of around 4,000 categories of items offered in the Brazilian market.
The measure should stimulate consumption even with the recent increase in the Selic rate, which generally restricts credit and slows down consumption. One of the concerns of the new decree – written after two other attempts to reduce the IPI – was to preserve the competitiveness of industrial zones that already have tax exemption, explained the special secretary for Productivity and Competitiveness of the Ministry of Economy, Alexandre Ywata, in an interview. to the program The Voice of Brazil.
“You have the direct benefit of companies. With this tax reduction, they will be able to put cheaper products on the market. With this, we guarantee greater competitiveness for the national industry. On the other hand, the consumer wins, because he is buying at cheaper prices. And the country as a whole wins with the expressive reduction of the Brazil Cost”, he said.
“This decree seeks a proposal to lower taxes on all products in the country and, on the other hand, protect the Manaus Free Trade Zone,” added Ywata.
The Manaus Free Trade Zone is an industrial hub located in the North of the country that aims to bring a range of production lines and jobs to a sparsely populated area. There, home appliances are produced, smartphonesIT equipment and automotive vehicles, among others.
According to the decree, the reduction of IPI for vehicles went from 18% to 24.75%.
Watch the interview:
Translated to english by RJ983
From Brazil, by EBC News