The Tax on Industrialized Goods (IPI) levied on furniture, veneer, panels and lighting will be kept the same until December 31. Thus, the furniture industry will continue to pay 4% taxes, which was supposed to increase to 5% in July. Decree number 8.280 dated of June 30, 2014, also benefits the automotive sector.
The announcement made by the Minister of Finance, Guido Mantega, was analyzed by the furniture sector bodies. In line with Movergs, which has represented the state in discussions on the topic, Sindmóveis Bento Gonçalves approves of the maintenance of the rate. Sindmóveis president, Henrique Tecchio considers it to be the right decision for the delicate time the sector is going through, where there has been a decline in the industrial production, unwanted inventory accumulation and the rise in imports of furniture.
For many years the furniture industry has requested a reduction on the IPI. In April 2012, it was granted temporary exemption from the tax, which originally was 5% on furniture. The benefit lasted until January 2013, when it started to grow gradually thereafter. In the beginning of 2014 the tax charged on furniture was 4% and it was supposed to resume its original percentage in July. The Federal Government estimates a waiver of R$ 161.6 million in taxes from the furniture, veneers, panels and lighting industries.
