Alckmin extends tax incentive deadline for productive sectors
Measures to benefit more than 58 thousand companies of many economic segments in the State
Governor Geraldo Alckmin signed on Friday, 18, executive orders that postpone the end of the tax benefits for the productive sector of São Paulo until December 31, 2012. The measures that will benefit more than 58 thousand companies from several industrial segments aim at reducing the cost of production and stimulating the growth of the economy in the State of São Paulo. See the summary of the measures below.
Considering the whole chain related to the benefited sectors, the positive impact of the incentives should reach 366 thousand companies. The benefits - which would expire at the end of the month - had their term postponed for 21 months and it should give rise to new investments, increase of production and generation of jobs. The measures include adjustments in the conditions for the granting of the right for more companies of the State.
"Everything aimed at employment, more businesses getting installed in São Paulo, more investment in São Paulo to generate jobs and income. And the other goal is the end consumer, reduction of price, reduction of the tax burden to make it easier for the final consumer. These are great goals", said the Governor.
The executive orders renew the reduction of the tax basis and deferral of ICMS (State Sales and Services Tax) granted to the sectors of auto parts, foods, toys, musical instruments, perfumery and cosmetics, leather and footwear, toilet paper, textiles and clothing, and wine. Before the initial grant of the tax benefits, in October 2004, those industrial segments registered R$ 6 billion in tax collection throughout the entire chain. In 2010, the total collected in the year ended at R$ 8.4 billion, real growth of 40%, partly due to the stimulation of the State Government.
According to the Secretary of Finance, Andrea Calabi, the renewed benefits have the purpose of "turning the wheel of the economy by means of the increase of the production capacity of the industry of São Paulo", she said. "Thus, it is not individually encouraging one company, but the entire sector in which it operates, using intelligent mechanisms, with low impact on the immediate collection, but with high potential of increase of the scale of production", completed Calabi.
Besides the extension, the Government established new incentives for São Paulo manufacturers:
* the manufacture of refrigerators, freezers, stoves and washing machines and dryers will benefit from the reduction of the ICMS tax basis that will decrease the tax burden to 7% in the sales to the retail. The measure also releases the imports of raw materials and semi-manufactured products, without a national similar, for the manufacture of white line goods and it establishes the deferral of the ICMS in the acquisition of inputs for production in the State of São Paulo;
* the tax burden for the industry of fiberboards (MDF) falls to 7% due to the reduction of the tax basis. The Government also grants the credit granted benefit of 5% to every furniture factory that acquires MDF from a producer in the State of São Paulo. The agroforestry sector is covered by the release of wood logs for the production of boards and the full crediting of the tax in the acquisition of machinery and equipment for forest management;
* the production of long-life milk, yogurt and fermented milk is benefiting with credit granted in the internal sales of São Paulo producers, in effect until December 31, 2011;
* the group of measures also foresees the granting of the partial deferral for the peanut processing industry;
* additionally, companies in the pre-operational stage are able to apply for the special system in the purchase of capital goods for fixed assets with ICMS deferral;
* improvements are being implemented in the application of the reduction of tax basis for solvents;
* the list of products in the textile and clothing sector - which already benefits from the extension of the reduction of the ICMS tax basis - increases with the inclusion of six more items: textile fibers no more than 5 mm long, high tenacity Polyester screens, quilts, pillows, cushions and puffs.
The special tax collection system for sectors subject to tax replacement will be into effect until December 31, 2012. The measure establishes a special term that allows collecting the tax on the last day of the second month subsequent to the operation and it benefits 23 industrial segments such as toys, electronics, construction material, cleaning products, medicines, among others.
The event, held at Palácio dos Bandeirantes (headquarters of the Government of the State of São Paulo), had the presence of the Vice Governor and Secretary of Economic Development, Guilherme Afif Domingos; of the Secretary of Finance, Andrea Calabi; Secretary of Regional Planning and Development, Emanuel Fernandes; and Sidney Beraldo, of the Civilian Household Office, besides representatives of the industrial sectors.