Bill increases IPI tax on cigarettes and related products.
A bill by Congressman Renzo Braz (PP-MG) raises the tax rate to 30%: "The country cannot afford to subsidize the treatment of millions of smokers without adequate compensation for the tobacco industry," he said; the proposal is being processed in a conclusive manner and will be analyzed by the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee.
Carol Siqueira, Chamber of Deputies News Agency The Chamber is analyzing Bill 5143/13, by Representative Renzo Braz (PP-MG), which increases the Industrialized Products Tax (IPI) levied on cigarettes and tobacco products. The proposal doubles the current tax base.
Current law (12.546/11) stipulates that the IPI tax on tobacco cannot be less than 15%, a limit that the congressman wants to increase to 30%. He also doubled the tax base for tobacco if the importer opts for the special IPI assessment and collection regime. The current tax is calculated at a value not less than R$ 0,80 in relation to the specific rate, but the congressman proposes a minimum of R$ 1,60.
The congressman argues that, although the tax burden on cigarettes is high, it is insufficient to offset public spending on the treatment of smokers. "The country cannot afford to subsidize the treatment of millions of smokers without adequate compensation from the tobacco industry," he said.
Conduct
The proposal is being processed in a conclusive manner and will be analyzed by the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee.