Beverage industry presses Plateau to resume incentive in the free zone

Chosen to be a part of the grant to diesel for truckers, the beverage industry presses the Government to reverse the measure withdrew the tax benefit for the manufacture of soda syrup in the Manaus free trade zone. In all, 59 soft drink makers, including Giants Coca-Cola and Pepsi, Ambev, threaten to cut 15000 direct jobs if kept the Decree of the President Michel Temer which pretty much ends with the tax incentives. According to manufacturers, with the Decree, there are 8% increase in the price of soft drinks to consumers, which will cause a 15% decline in sales, with drop of R $6 and R $1.7 billing billion billion in tax collections. Businesses complain that, in order to ensure that the allowance of R $0.46 in the price of diesel-truck driver's bag – the Government sparked a major distortion in the production chain to break a contract "with companies that have settled in the syrup manufacturing polo soft drinks in Manaus in search of tax incentives of the free zone. After "ruralists" and exporters, this is another industry that complains about the impact of the package adopted by the Government to meet the truckers. Assembled in Brazilian soft drink industries Association (Abir), 59 companies have set up a large political articulation in Congress to overturn the measure. Three parliamentarians from the bench of the Amazon – the Senators Vanessa Graziottin (PCdoB) and Eduardo Braga (MDB-AM), as well as by Mr Pauderney Kamlesh (DEM)-presented, each, a legislative decree to overturn the presidential decree. "We want the withdrawal already. The Government to back down, "said Alexander Jobim, President of Open. According to him, the Decree "nullifies" the regional incentive. "It pays to continue with the concentrated polo? The industry's answer is no. Do not stand the free zone. " They have already met twice with the Finance Minister, Eduardo Guardia, who claimed distortions in the incentive system. One of the meetings took place in the House of the Mayor, Rodrigo Maia (DEM-RJ) with all the State. The IRS provides for an increase of $740 million in storage in 2018 R and R $1.9 billion next year with the Decree. This money will compose part of the cost of R $13.5 billion with the subsidy to diesel. The legislation allowed manufacturers installed in the free zone them pile up credits of IPI in the sale of inputs produced in the region to bottlers installed in other States. These credits amounted to 20% of the value of the sale. With the Decree, fell to 4%. For the recipe, the benefit causes distortion and unbalances the competition. Tax calculations, for each R $100 sold by a company that produces in the free zone, R $4 credit left, what would work in view of Revenue as a way of "paying" for companies. Against the grain of Abir, the Group of companies that is not in the free zone celebrated the Government's decision. The President of the parliamentary front in defense of the Brazilian Beverage Industry, Mr Fausto Pinato (PP-SP), mobilizes to prevent the Decree be overturned. "He disappoints the giants of the beverage industry and move into the wound of oligopoly." The Ministry of finance did not comment. /COLLABORATED VERA ROSA