Government extends exemption of basic basket and zera IPI unrefined sugar

Brasilia-as of today (15), any type of unrefined cane sugar will no longer pay tax on industrialized products (IPI). The Decree published in the Official Gazette of the Union zeroed the aliquot of amorphous, sugar tax category that encompasses sugar Brown and crystal type.
So far, these products were paying 5% of IPI. According to the Executive Secretary of the Ministry of finance, Marlene Oliveira, the Government granted tax exemption because it understood that the unrefined sugar is also part of the basic basket, whose release was announced in early March.
"There were doubts if the amorphous sugar was totally designed for industries or if arriving directly to the consumer market. As we can see that this type of sugar is also sold in the trade, we believe that it is included in the basic basket and must be fully discharge, "said the Secretary.
According to Oliveira, the Government will raise $ 45 million by the end of the year with the reduction to zero of the IPI. The tax waiver is estimated at r $ 108 million per year from 2014.
The Official Gazette also published a decree regulating the extension of the special scheme of reintegration of Tax Values for exporting companies (Returned). Into force from 2011, the returned to the return up to 3% of the value of manufactured products sold abroad. The program would end at the end of last year, but was extended until December 31, 2013 to continue stimulating exports.
The provisional measure (MP) with the extension of the Returned won in June 3 because it was not voted on in time by the Senate. The extension of the period was then included in another MP in July 11 approved and sanctioned by the President Dilma Rousseff. During this period, exporters were not affected because the calculation of tax credits – taxes that the Government must return to the companies-only occurs every three months.
The President Dilma vetoed the extension of Returned until the end of 2014. According to Oliveira, the program was not extended beyond the laid down because there is no room in the budget. According to the Ministry of finance, the Government will raise $ 2.2 billion in 2013 with the return of the Social integration program (PIS) and the contribution to the Social security financing (Cofins) for companies that sell abroad.
The Executive Secretary of the farm also said the higher dollar improved the competitiveness of exporters. "To maintain fiscal discipline, we have to take measures that are not always desired. As the Government does not have unlimited budget, need to decide on the allocation of resources. The situation of exporters is not as difficult than when we started negotiating the measure. The exchange rate has improved considerably since then, "he said.
If the veto to the Returned extension to 2014 is knocked down by Congress, Oliveira said the Government may take measures such as resorting to justice or making new budget cuts to allow maintenance of the benefit.