White Line to ask that current IPI level be maintained
Valor Econômico
There are still 51 days left until the end of the extension of the Excise Tax (IPI) exemption granted to white line products, but the sector is already beginning to make its moves in order to keep the Federal Tax at a more reduced level for refrigerators and washing machines like the level granted the stoves, whose tax rate is 4%. The idea is to make the Government recognize the so-called "essentiality" of these two household appliances, as it happens with stoves, and thus, make the benefit granted in April a long-term policy. Among the arguments is the calculation of the total amount of the tax waiver, nearly R$ 200 million (US$ 108,1 million) in the year.
According to the president of Mabe for the Mercosur, Patrício Mendizábal, this amount is only what the Government did not collect with the exemption, not counting the jobs that were kept and the production these measures allowed. The officer told DCI, with exclusiveness, that from now on the sector will start the conversation with the government in order to obtain the classification of essentiality so as to stimulate the sales, mainly of washing machines. According to the 2007 data of the IBGE (Brazilian Institute of Geography and Statistics) announced by the National Association of Manufacturers of Electric and Electronic devices (Eletros) only 39.25% of the Brazilian households had washing machines, 91.03% had refrigerators, but stoves are found in 99.9% of the Brazilian households.
While there is no definition on this matter, the sector shall seek a new extension of the IPI tax reduction. According to the president of the Mexican multinational that produces brands such as Mabe, General Electric, Dako and, more recently, Continental and Bosch, Eletros and the manufacturers have this topic in the agenda as one of the most important ones to be discussed. Another argument that should be used is the increase in the sales and in the level of the capacity of the industry that is being used.