The federal government issued a decree that reduces the rates of industrialized products listed in the Table of Incidence of the Tax on Industrialized Products (TIPI). The measure amends a previous decree, published at the end of last month, which deals with the same topic. The changes will take effect from May 1st.
According to the government, the measure published on Thursday (14) in the Official Diary of the Union (DOU), seeks to adjust the rates of the table for this year, in relation to what was established in the 2017 decree, “promoting the maintenance of the general reduction of the IPI rate at 25% for most products.”
The government justified the reduction on the grounds that the measure aims to stimulate the economy, affected by the covid-19 pandemic, to assist in the country’s economic recovery.
Also according to the government, the changes represent a decrease in the tax burden of R$ 19.5 billion for the year 2022. In the following years, the estimated reduction will be R$ 20.9 billion for the year 2023 and BRL 22.5 billion for the year 2024.
“Because it is an extra-fiscal tax, of a regulatory nature, the presentation of compensation measures is waived, as authorized by the Fiscal Responsibility Law”, informed the General Secretariat of the Presidency of the Republic.