Happy Friday! Today, the Bolsonaro government plans new tax cuts in a bid to gather votes. The solar power boom in Brazil. Another deadly police massacre in Rio de Janeiro.
☕ If you like our work and want to give us an extra boost, you can fill up our reporters’ coffee mugs. Supporters get exclusive perks! Find out more.
Changes incoming for manufactured goods tax
The Economy Ministry is reportedly preparing a new decree to reduce the IPI manufactured goods tax. This new decree would replace others issued in the first half of the year, which faced challenges at the Supreme Court.
Context. Back in February, the federal government slashed manufactured goods taxes by 25 percent for all products except cigarettes. The move angered companies operating in the Manaus Duty-Free Zone, Brazil’s only free-trade zone.
- The Manaus zone was set up in 1967 by the military dictatorship to promote industrial development in the heart of the Amazon.
- Companies were lured to the region by tax-free policies, which allow them to remain competitive despite hefty costs to ship goods to the rest of the country. But Manaus producers argue that tax breaks to competitors put them at a disadvantage. ...