Friday, July 15, 2016

Basket with salmon, trout and provolone enters in the sights of the economic team

The salmon is not alone as a "luxury item" basic basket today have zero taxation, but is tipped to have the high taxation to fatten up the public coffers in 2017. If you pass a magnifying glass in the legislation which set this exemption, the economic team can find other items of questionable basicity as cod, trout, Atlantic tuna. And also ten kinds of cheese, provolone, mozzarella, mines, dish, cheese curds, cottage cheese, cream cheese, parmesan cheese, fresh cheese, matured cheese. Also pay less taxes extracts, essences and concentrates of coffee and preparations with a basis of these extracts.

In the interview to the newspaper O Estado de s. Paulo published in its Sunday issue, the Finance Minister, Henrique Meirelles, cites the salmon as a "luxury item" that was included in the basket, on which the shares of the PIS-Cofins is currently zero, but that can be raised. And even joked: "other fish no good? Say, a sea bass? "

In fact, the sea bass and salmon have more or less the same price, currently in the range of R$ 50.00 per kilo of fresh whole fish. In the first six months of the year, Brazil has spent close to $ 200,000,000 importing 32000 tons of salmon from Chile, the main supplier of the Country. Already the sea bass is a national but becomes expensive mainly extractive fishery breakdown at sea.

According to Irs estimates, the Government will no longer raise R$ 18.5 billion this year because of the exemption of PIS-Cofins basic basket. The measure, adopted in 2004, benefit items such as beans, rice, cassava flour, sweet potato and corn in addition to milk. Also on the list, pasta, sugar, soybean oil, butter and margarine. And hygiene and cleaning products, such as SOAP, toothpaste, dental floss and toilet paper.

Are relieved the beef fresh, frozen or salted, the proteins of chicken and even the meat of goats and sheep, to respect eating habits in different regions of the country. And all fish-hence the list of items not so basic as well.

The salmon, said Meirelles, is a small example of what can be done to raise taxes-if applicable. He explained that the increase in taxes and contributions is under study, but it is what he called "Plan C". The plan, he said, is to adjust the public accounts contain the growth of public expenditure and with some recovery of the collection. Plan B, reinforce the box with privatizations, securitizations and asset sales. And the plan C, tax increases.

The Government maintains this possibility on the table, but you know that raising taxes has an impact on the economy, especially against a backdrop of still weak economic activity. So, the idea is to weigh very well the impact that each measure in the tax area will result.

In the case of PIS-Cofins, studies for his elevation go far beyond the basic basket. But, for every sector in which it evaluates the increase, is taken into account as well as this measure will be in increased costs for companies and, in the limit, if she will have to resign because of this. There are also studies to a high general.

The same care is taken in Cide fuels, another tribute tipped to rise if activated plan c. While it is a simple implementation measure because, unlike the PIS-Cofins, does not depend on approval by the National Congress, the increase of the direct impacts on inflation Cide.
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