For another month, the Tax on Industrialized Products (IPI) will continue with a 25% cut. President Jair Bolsonaro signed a decree that maintains the reduction in this percentage for the next 30 days, informed the General Secretariat of the Presidency of the Republic.
The decree came out in an extraordinary edition of the Official Diary of the Union and contradicts recent announcements by the Minister of Economy, Paulo Guedes. Two weeks ago, the minister announced the expansion of the cut to 33%.
In a note, the General Secretariat of the Presidency of the Republic informed that the measure will maintain the economic stimuli of sectors affected by the covid-19 pandemic. “With the proposal, it will be possible to maintain the stimulus to the economy, affected by the pandemic caused by the coronavirus, in order to ensure the levels of economic activity and the employment of workers. In this way, it is expected to promote the economic recovery of the country”, highlighted the statement.
The decree will take effect immediately and does not depend on approval by the National Congress.
Since February, the IPI has been reduced by 25%, as a measure to stimulate the economy. At the time, the Ministry of Economy reported that the increase in revenue resulting from the economic recovery allowed the government to give up revenue and promote tax rebates, which are levied on manufactured products such as cars, refrigerators, stoves and others.
Asked about the maintenance of the IPI cut, the Ministry of Economy did not comment.