Bill adapts legislation to prevailing treaties on Mercosul

The Committee on Economic Development, Industry and Commerce approved on Wednesday (8) an extension on the waiver on Excise Tax (IPI) in the purchase of cars by taxi drivers and by people suffering from physical disabilities – for vehicles produced in member-countries of Mercosul.

That measure is included in Bill 2896/08, proposed by the Executive Power, which amends Law(8.989/95) , which created that benefit.

Two amendments presented by Deputy Otávio Leite (PSDB-RJ) were approved. The first one extends the term for the concession of IPI discounts until December 2011. That deadline would be this year, and has already been postponed six times since 1996. The second amendment clarifies that those products which are necessary to the adaptation of acquired vehicles for those imported vehicles will also be tax-exempt.

Adaptation of Law
According to the opinion of its rapporteur, Deputy Miguel Corrêa (PT-MG), that bill adapts legislation to the prevailing treaties at Mercosul, which recommend a similar tax treatment for domestic products and for those produced by the member States.

Argentina, Uruguay and Paraguay are part of the Treaty of the South Common Market, and other countries which join that agreement will have the same treatment.

According to the government, that bill does not represent and additional tax waiver to the one already provided for in the Yearly Budgeting Law (LOA), since that benefit will also contemplate only one vehicle, no matter if it is domestic or imported.

Procedure
The bill was deemed conclusive power and will be analyzed by the Committees on Finances and Taxation; and on the Constitution and Justice and Citizenship.

Report - Marcello Larcher
Editing - Newton Araújo
Translation - Positive Idiomas Ltda