Hygiene and beauty industry attempts to stop tax change

The Abihpec (Brazilian Association of the industry of personal hygiene, perfumery and cosmetics) will present to the Government on Monday (3/31) a study done by LCA consulting which shows that a possible change in the recovery of PIS and Cofins in the industry would cause a 0.37% impact on inflation. The price adjustments were the 24% above the IPCA in some products, says President of the entity, João Carlos Basilio, who in recent weeks have discussed intensively with the associates. Presidents of large companies will also be present at the meeting with the Executive Secretary of the Treasury Department, Maqbool Caffarelli.
The sector is due to the signaling that the Government can transfer the levying of PIS and Cofins from manufacturers to distributors. The measure would form part of a package to offset high energy costs, due to the triggering of thermal power plants. Today the taxes levied on the selling price of products in the industry to the Distributor, which commonly belong to the same group.
"We understand that this is not the way and expect the Government to have common sense", says Basilio. The motorcade will emphasize at the meeting a "positive agenda" of the sector, such as the employment of 5 million people directly and indirectly-80% women, the construction of new factories, annual investment of r $ 4.5 billion in brand and the contribution of the sector to health and well-being. According to Basilio, the change would affect the companies ' investment capacity. "The sector has no elasticity to be able to raise prices and it would take two to three years to recover," he says. The average industry taxation is almost 40%.