Wine producers negotiate IPI reduction

The leader of the Government in the House of representatives, André Moura (PSC), meets today in Brasilia with representatives of the wine sector, rum and liquors, to seek a solution in the face of the impasse of the levying of tax on industrialized products (IPI) from the provisional measure (MP) 690, in force since January. By law, the tribute levied on the hot drinks began to be calculated with a portion on the product value (ad valorem), calculated in proportion to the output of the industry. With rates of 10% (for wine), 25% (cachaça) and 30% (liqueurs), the tax is being pointed to as the main factor for the closure of micro and small companies of these segments, which are also losing competition against the imported.
By December 2015, the IPI of hot drinks was charged through a fixed value by quantity produced (aliquot ad rem). According to the International Relations Manager of the Brazilian Wine Institute (Ibravin), Carlos Paviani, the wine maker paid R$ ECI 0.73 per bottle. With the new rate, the tribute went to 3.00 R$ the unit, in the case of premium products, for example. "It''s impossible, because very expensive final price, mainly of fine wines, damaging its marketability. We''re losing in sales for products of MERCOSUR and other countries, "he reports. Paviani points out that a decade ago, 50% of the wine sold in retail gondolas were Brazilians. "Nowadays, of every 10 bottles sold, eight are imported wines", compares the leader.
Paviani points out that, even in Government Dilma Rousseff, had already been made a deal so that an amendment was inserted to MP 690, in order that the tax rate down to 6 percent in 2016 and 5% in 2017. "Dilma disregarded this agreement and vetoed the amendment," complains. For 15 days, after losing again to demand approval vote of Congress vetoes, the document presented by the Ibravin Government leader, requesting that the IPI''s wine set at 6%. "It''s a reasonable way to keep farm collection, allowing winemakers to gain my breath," he explains.
According to the Manager of Ibravin, the 750 registered wineries in 2016, 680 were only able to produce and market the product, as a result of the breach of the harvest, when some companies, despite the stock, they didn''t get enough grape. "To make matters worse, the high tax burden added to the increase in electric energy, exchange rate and inflation made other business.
Congressman Afonso Hamm (PP) emphasizes that, in addition to the IPI, the chain still paid PIS, Cofins and ICMS, which represents 53% of taxes. "This calculation basis is penalizing wine producers and the consumers themselves," strengthens. "To give you an idea, the Chile producers pay 18%, and those of Argentina, 22% of taxes on wine." Recently, Hamm has expressed, in the plenary of the Chamber, the need for reduction of tribute and other sectoral demands. "In some cases, the increase of IPI generated about 300%, adjustment of tripling the prices", compares Hamm. The Congressman argues that "this is the moment to state the activity, which is strategic for the economy of Rio Grande do Sul, where there are 15 1000 grape producers (80% of wine producers in the country).
The same occurs with the rum, which has 1.5 1000 producers registered with the Ministry of agriculture, livestock and supply. With the change to ad valorem (25%), the IPI of the drink started to cost R$ 6.25 (reset at more than 280%), the Executive Director of the Brazilian Institute of Cachaça, Carlos Lima. "In view of this, since January, several micro and small producers closed the activity."
Lima claims that the industry is hopeful that, "somehow, the Government go to minimize" the rate of this tax. "Once maintained in these heights, should generate increased informality and affect small-scale producers, negatively impacting including at man in the field."