Brazil reduces taxes on more than 4 thousand industrialized products

A new Decree has been issued enabling a 35% reduction in the Tax on Industrialized Products (IPI) for most items manufactured in Brazil and, simultaneously, allows for the preservation of the competitiveness of products made in the Manaus Free Trade Zone (ZFM).

The decree also further reduces the IPI by 24.75% for automobiles, to balance the tax reduction for the automotive sector with that granted to other industries. The IPI is a federal tax levied on approximately 4,000 national or imported items.

The new measures are expected to increase the competitiveness of local industry, with lower taxes and increased production, thus leading to a positive impact on Brazil’s GDP.