12/15/2008 11h08
SP releases US$ 521.7 million more for the industry
Folha de S. Paulo - 12/13/2008
The government of São Paulo launched yesterday a credit line of R$ 1.2 billion (US$ 521.7 million) for the auto parts and machinery companies, besides a series of tax measures - like the money restitution of the ICMS (sales and services tax) paid by the micro enterprises and a larger term to pay such tax. The objective is to reduce the effects of the international financial crisis on the industry and commerce of São Paulo. Allowing the micro enterprises to receive again, in cash, the ICMS paid on the purchases made in the industry and in the wholesale market, the government will renounce to R$ 350 million (US$ 152.2 million) collected with the tax yearly. The package of Governor José Serra signals the concern of the State with the impacts of the crisis on the economy of São Paulo. Four decrees, which will be published next week, and one bill of law are included in the package sent to the state legislature to relieve the levying on the companies. The loan of R$ 1 billion (US$ 438.8 billion) to 396 São Paulo auto parts companies members of the Sindipeças (Brazilian Association of Automotive Components Manufacturers) and of R$ 200 million (US$ 43 million) to 99 machinery companies members of the Abimaq (Brazilian Machinery Manufacturers Association) will be offered by Nossa Caixa. The financing programs offered by this bank from São Paulo will be maintained after its sale to Banco do Brasil bank, expected to take place in March. It is the second line of credit for the industrial sector launched by the state government in the last 30 days. In November, São Paulo announced an aid of R$ 4 billion (US$ 1.74 billion) to the car makers' banks. Other sectors, like the real estate and the agricultural sectors, can be benefited by new measures of the government. One of the main tax measures of the package announced by the government of São Paulo is the restitution of the ICMS to 516 thousand micro enterprises that sell up to R$ 240 thousand (US$ 104.3 thousand) a year. Together, they employ 2.5 million people. The bill of law sent by the government also provides more benefits to the consumers who ask for the bill of sale. They will be able to use the credits to pay bills related to water, energy, telephone, gas, among others - so far it was possible to get a discount in the IPVA (Motor Vehicle Tax) or receive the money in the bank account. For 2009, R$ 140 million (US$ 60.9 million) in cash will be raffled for those who adhered to the program and ask for bill of sale. The commerce and the industry also gained more time to pay the ICMS related to December - the tax should be paid in January. A decree-law will allow half of the collection (R$ 2 billion/US$ 869.6 million) to be done in January and the other half in February in order to guarantee the companies more working capital . Another governmental decree will postpone to June of 2009 the reduction of the ICMS tax rate from 18% to 12% for some segments. It was also extended, to the end of 2009, the term for the companies that pay ICMS through the system of tax substitution.
