São Paulo reduces State Sales and Services Tax of the sector of plastics
Valor Econômico - 12/05/2007
The government of the State of São Paulo announced the reduction, from 18% to 12%, of the State Sales and Services Tax (ICMS) for the industries of the petrochemical and plastic chain that adhere to a program specifically created for the sector. The São Paulo producers of first generation raw material of the petrochemical chain and the manufacturers of thermoplastic resins (second generation of the chain) will have rates of 12% in the internal sales to the State. The idea of the program, according to Treasury Secretary, Mauro Ricardo Costa, is to equal the competitiveness conditions of the São Paulo industry with those of the manufacturers installed in other States, since the inputs of interstate operations pay 12%. The program will initially work until December of 2009. The companies that adhere to it should reach collection, investment, and employment generation goals. The goals will be negotiated with representatives of the companies and their reaching will be evaluated every six months. Costa says that the measure will provide cheaper inputs for the plastic consumer goods industries, which produce packings, bottles, tubes, and connections, among others. In São Paulo, there are 4,136 manufacturers in the segment, with 177 thousand workers and annual total revenues of R$ 20 billion (US$ 11.24 billion). In the 1990's, the State corresponded to 60% of the country's inputs and plastic products production. Today, the participation is 47%.