Change in the special regime of the chemical industry raises tax rates until 2021

The Government announced changes to the Special Regime of the chemical industry (Reiq) with increased rates of discount until 2021. Presentation of the Finance Minister, Nelson Barbosa, there is a table that explains the proposed changes in the tax relief granted to companies of this regime. The idea is to gradual reduction of incentive, with impact of R$ 800 million a year.
The Reiq favors petrochemical companies in purchasing domestically or imports of products such as naphtha, ethane, propane and butane. Among other things, the law allows the credit by the differential between themselves petrochemicals the full value of the rate of taxes, which is 9.25% (1.65% of PIS/Pasep and Cofins 7.6%) and the amount paid by their suppliers (3% in 2016). This difference is currently 6.25%.
The Government wants to propose that the rate of debt that would be 5% in 2017, resulting, therefore, in a difference of 4.25%, increase to 6.13%, falling to 3.12% already next year.
In 2018, the debit tax would in 6.13%, by the new proposal. In 2019, would pass to 7.12%, a level that would be held the following year, with difference for crediting of 2.13%.
As early as 2021, would rise to 8.12%, with the difference if further reducing, to 1.13%. Before the Government proposal announced this Friday, 6, the rate of expected debt was 5.6% in 2019, 2020 and 2021, with difference of 3.65%.
In the press conference, the Minister Nelson Barbosa explained that the measure increases the speed of the fall of the incentives that was already planned until 2021. He said that it is necessary to offset the correction table and assessed that the petrochemical industry is already benefit from Exchange and by the evolution of the international price of oil.
The measure is part of a tax package that amends the income tax legislation in Brazil and was made to compensate for the loss of revenues to the correction of the Individual income tax (IRPF) in 5%, announced on May 1 by President Dilma Rousseff.