The IPI must bring down consumption of hygiene and beauty items by up to 17%

With the expansion of the collection of the IPI, sales of toiletries and beauty must fall between 7 percent and 17 percent this year. The finding was made in a study by LCA consulting to Abihpec (Brazilian Association of the industry of personal hygiene, perfumery and cosmetics). It is estimated that the measure raise the revenue of the Federal Government for $ 1.5 billion per year.
The sector received with surprise change in January, but failed to advance in the negotiations with the Government. "We will have to adapt to a different world," says Joao Carlos Basilio, President of Abihpec. He expects reflexes in rising inflation, the informality and in competition with imported. Investments in innovation and brand can also decrease.
Hypermarcas, L ' Oréal, Unilever and P&G have distributive transactions and must be taxed by the new rule. Claudio Bergamo, President Hypermarcas, believes that most in the industry will pass on in full the expenses with IPI. If this occurs, prices can climb to 12.5% above inflation, according to research commissioned by Abihpec. The tax change affects about 15% of revenues, which also sells Hypermarcas medicines. The company believes that the transfer of IPI will bring small effects on the demand in the consumer division. The category of glazes, brand Risqué is the market leader, will be the most affected.