Monday, April 17, 2017

AmBev quit to build factory in Rio de Janeiro

The Ambev brewery gave up building a factory of bottles and aluminum cans in Santa Cruz, in Rio de Janeiro. Obstacles to granting tax breaks for the project were instrumental in the company''s decision.
Even prohibited by a judicial injunction to grant, by Decree, benefits and tax incentives to companies, the State Government of Rio sent on 5 April day of the Legislative Council (Chamber) a bill that, if approved, would grant the manufacturer the right to postpone by 20 years the payment of ICMS a new factory up to 650 million R$.
"The brewery Ambev reports that the uncertainty regarding the approval process of your investment in an aluminum factory in Rio de Janeiro, including in relation to the maintenance of a court decision that prevents the granting of new benefits in the State, makes it unpredictable deployment of that factory. In this scenario, the investment in the River becomes impossible within the current flow of the company''s planning, "says Ambev, in a note.
The proposal forwarded to the Chamber at the end of the period of validity of the incentive, the GST would be paid with a fix of 3% per year. The new plant would be built next to a brewery Ambev already in operation.
Amid the State''s financial crisis, the incentive project has generated controversy because the Government give up the immediate receipt of a tax with which it could pay off some of your debts. The Governor Luiz Fernando Pezão (PMDB), however, defended the project in message to State representatives.
According to him, the new venture would create at least 200 jobs. According to the Governor, the factory was being disputed by other countries, such as Mexico. Ambev says he hasn''t defined where will transfer the factory.
At the time of the submission of the project to the Chamber, the brewery has warned it could quit. "Ambev respects and waiting for the manifestation of the legislative and the judiciary of the River, in order to determine the progress of the construction works or the relocation of investment to another State or country" said Ambev.
DCI - 17/04/2017
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