Minister Henrique Meirelles received document exporting entities and emphasized increase of 2% rate in 2017

The Minister of Industry, Trade and Services (MDIC), Marcos Pereira, delivered, on Wednesday (28), a document with claims of exporting entities on increasing Reintegra the rate for the finance minister, Henrique Meirelles.

The Reintegra is the Special Regime of Reinstatement of Tax Amounts for Exporting Companies. By law, the Reintegra can return part of the turnover of exports of manufactured goods as compensation for indirect taxes levied in the chain of manufactured products.

Meirelles said the technical team will deepen in the study, but signaled compliance with the law in 2017 when it is planned to increase the rate to 2%.Currently, the value is the minimum level of 0.1%. 

Marcos Pereira considered that possibility a step forward for the industry, which is responsible for most of the exports of Brazil and 46% of jobs in the manufacturing industry, according to authorities.

"We understand the difficulties of the economy, but it is important to know that the return of Reintegra to 2% will be maintained," he said. The rise is already provided for in the federal government budget for next year, but confirmation increases the predictability to the private sector.

Study

The election of the entities led by Foreign Trade Association of Brazil (AEB) is that the rate is 5%. According to the study, the increase in the return rate of tax waste exports to this value would contribute to increasing competitiveness in international trade and the recovery of the economy.  

Among the data presented, it is pointing the recovery of jobs from the return of taxes and increasing exports. In a broad scenario (direct, indirect and induced) could be created over 780,000 jobs, according to analysis by experts.

The document will be analyzed by the technical department of the Ministry of Finance. Meirelles stressed the importance of balancing public accounts and reduce expenses.

reintegrates

By law, the Reintegra can return from 0.1% to 3% of the revenues of exports of manufactured goods as compensation for indirect taxes levied in the chain of manufactured products. The program was launched in August 2011. 

According to the sectors represented at the meeting, there are now 7.2% of tax waste exports which should be returned to the companies. Exporters argue that Reintegra is no tax benefit or tax breaks, but return of taxes paid in advance by exporters.

According to them, the increase in exports may be the fastest way for the recovery of the economy and increase tax revenues.

Source: Portal Brazil, with information MDIC