Brazil’s Economy Minister said on Thursday that the Federal government is set to cut taxes on industrial goods (IPI) by 33 percent. Paulo Guedes believes slashing the tax will help maintain the country in its process of re-industrialization after two years of pandemic-related slowdown.
The announcement was made at an event in São Paulo held by Brazil’s property developers association (Abrainc). Mr. Guedes said it’s been 40 years since the last massive tax reduction in Brazil and added that this new pack of markdowns is the seventh during his administration.
Bolsonaro’s economic tsar said the cuts are part of a government plan to pave the way for Brazil’s entry into the Organization for Economic Co-operation and Development (OECD) – an apple in the president’s eye. The economy ministry also noted that Brazil recently lowered Mercosur import taxes.