Brazil plans to extend IPI for sectors affected by Selective Tax

Brazil’s federal government plans to extend collection of the IPI, a tax on industrialized products, for some sectors during January. Finance Minister Dario Durigan confirmed the plan on Tuesday, November 3, and said it depends on approval by the National Congress.

The measure is intended to prevent a loss of revenue following a delay in sending Congress the provisional measure on the Selective Tax. A proposal setting the new tax rate is expected to be submitted to lawmakers on Tuesday.

Durigan said the IPI extension would apply only to sectors affected by the Selective Tax. The new tax is expected to begin taking effect in February.

Sources: CNN Brasil.