Gleisi withdraws proposal which reduces tax break for soda

The soft drink industry gained two WINS in Brasilia this week. The small and medium manufacturers will tell you, as of today, with a dedicated joint parliamentary defense of the segment. The major industries, in turn, saw yesterday the Senator Gleisi Hoffmann (EN-PR), Rapporteur of the provisional measure 675, withdraw the proposal of change in taxation of the industries installed in the Manaus free trade zone, which, if it were ahead, would reduce tax benefits.
The major industries of drinks celebrated the exclusion of the proposed IPI credit rate from 20% to 17% for soft drinks industry with factories in the Manaus free trade zone.
Senator Gleisi Hoffmann, Rapporteur of the provisional measure 675, had included the proposal to change the taxation of the sector and other steps to raise the Government revenue collection, but went back and deleted part of these amendments. The report of the interim measure will be voted on next week.
"The industries of the sector like the withdrawal of this proposal because it would be a mistake. The Senator had common sense, "said Alexander Jobim, President of the Brazilian Association of manufacturers of soft drinks and non-alcoholic drinks (Abir), which brings together industries responsible for 85% of the production of soft drinks in the country. The change would affect Ambev, Coca-Cola, Pepsico, and Kirin Brazil which maintain factories in the Manaus free trade zone for the production of extracts and concentrates. Around 90% of the production of soft drinks is made with concentrated processed in the region.
The new parliamentary front, that will be created formally today in Brasilia, will be made up of 216 deputies and nine senators and will be coordinated by Mr Jorginho Mello (PR-SC). "The front will do a job similar to the parliamentary front of micro and small enterprises, will defend similar conditions of competition for small and big industries," said Mello.
Among the themes proposed are the establishment of taxation proportionate to the businesses of the companies, and raising the ceiling of billing for small industries conform in the Simple arrangements. The parliamentary front was formed on the initiative of the Association of Manufacturers of soft drinks of Brazil (Afrebras) and others in the industry.
"The goal is to give voice to the Brazilian industries and avoid economic concentration," said the President of Afrebras, Fernando Rodrigues of neighborhoods. The entity represents 180 regional manufacturers, which together account for 7% of the production of soft drinks.