Tuesday, September 20, 2016

Rio de Janeiro: two-ply toilet paper and triple return part of the basket

In the Official Gazette of last Thursday (15) the State Government accepted a Commission for taxing the craft Chamber and repealed a decree that excluded of the items in the basket (benefited by tax exemptions) the toilet paper to double and triple leaves. Only the most fragile, simple sheet, was still being considered part of the basic basket.
Thus, the manufacturers of the product considered of higher quality, which was a tribute to 7%, pay a rate of VAT of 18% and an additional 2%, which is transferred to the State Fund to combat poverty. Now, no matter the paper coating, all are taxed by the lowest tax rate. The decision was viewed at the time as an attempt to, in the face of crisis, the State increase the collection as you can.
"The Government couldn''t change by Decree Law 4,892/2006 which includes the toilet paper in the basket. The law talks about toilet paper without specifying the type. It doesn''t matter if it''s one, two or three leaves. Therefore, one should not increase taxes, "said State representative Luiz Paulo, Chairman of the Committee on taxation and control of the Chamber, through the note submitted by his press office.
In may, representatives of manufacturers came to go to the Chamber and complain about the tax increase in Taxation Committee hearing.
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