Recently, the Federal Government declared that items manufactured in Brazil will have a 35% reduction on the Tax on Industrialized Products (IPI). The tribute, which is applied to around 4,000 industrialized products, includes cell phones, home appliances, gym equipment and cars. See more below about the decrease in fees.
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Through the decree, the Ministry of Economy seeks to increase competitiveness among the country's industries, since lower taxes can increase production. However, items manufactured in the Manaus Free Trade Zone are off the list, as this could compromise the competitiveness of products in the area.
the Tax on Industrialized Products
The IPI is a tax levied on national and imported items that during their production underwent an industrialization process (transformation, assembly, packaging or restoration). Through its application, the tax can warm up specific economic sectors, either through exemption or reduction of rates.
IPI reduction for cars
In general, what most calls the attention of manufacturers and consumers is the IPI reduction for automobiles, whether cars or motorcycles. Now, the application percentage drops from 25% to 18%. In addition, the reduction is related to the displacement of the car's engine.
In 1.0 cars, for example, the exemption is relatively greater than for a model with 2.0 unit. The Government even makes it clear how the IPI reduction is legally guaranteed:
“By detailing the products that will have their rates changed, the new edition clarifies the correct application of the IPI on the invoicing of industrialized products, guaranteeing legal certainty and the advancement of exemption measures tax. The text also presents specific treatment to preserve practically all the effective production of the ZFM, taking into account the Basic Production Processes.”
Impacts of the measure
According to economists, the measure could have a positive impact on the country's Gross Domestic Product (GDP). Therefore, from the date of publication, both national and imported products will benefit.
