Brazil

Brazil

Reduces tax rates on manufactured goods

25 Feb 2022

On 25 February, the Brazilian Presidency issued Decree No.10.979, enacting a reform on "Imposto sobre Produtos Industrializados" (IPI), a tax on manufactured goods. The new regulation reduces the previous tax rate in force since 2016, which was of a variable nature.

According to the Decree, which entered into force on its date of publication, the applicable tax rate for manufactured products has been reduced to 18.5 per cent for certain specific manufactured goods such as automobiles, and to 25 per cent for all other manufactured goods, excluding tobacco products. The authorities declared the IPI reform is part of a wider plan aiming at the re-industrialization of Brazil.

Nature of measure:
  • Incentives
Type:
  • Treatment and operation (Other)
Industry:
  • Manufacturing
Inward FDI:
No
Outward FDI:
No
Sources: