Government extends IPI cut for construction sector
O Estado de S. Paulo
Minister of Finance, Guido Mantega, announced yesterday the extension, for another year, of the release of the IPI (Excise Tax) for construction products. "The products, already released, will continue for another year", he said. According to him, the Government will also renew the current system for the recovery of PIS/Cofins (Social Integration Program / additional mandatory contribution to the financing of social security) for the sector. The Government prepares the measures and the renewal of the release to go into effect as of January 1. The Minister declared he will also consider other measures proposed by entrepreneurs concerning the levying of the IPI and Cofins, besides the extension of the benefit to other sectors.
"And we will continue providing more credit because (construction) is a sector that needs a lot of credit", he said, as he announced the extension. Recalling he was confirmed to continue ahead the Ministry of Finance, the Minister said the "Government will continue promoting a policy of incentive to the construction sector". As an example, he mentioned the second phase of the My House, My Life housing program and the Growth Acceleration Program 1 and 2. Mantega said the sector is one of the "main drivers of the Brazilian economic development" and it will grow 13% in 2010. "It will be the best year of the last decades", he said adding civil construction is the main generator of formal jobs in the country.