Brazil announces tax cut for furniture,construction supplies

11:14, November 26, 2009      

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The Brazilian government on Wednesday announced tax cuts for furniture and construction supplies.

The Tax over Industrialized Products (IPI) for the furniture sector, ranging from 5 to 10 percent depending on the product, will fall to zero till the end of March 2010.

The tax cut for construction supplies, which was supposed to last until December, was renewed until June 2010.

The tax reduction for furniture was aimed at boosting the domestic market, which has been affected by the weak sales figures in the international market, Finance Minister Guido Mantega said.

Since the beginning of the year, Brazil has announced several tax cuts in such sectors as vehicles, construction supplies and household appliances to boost domestic consumption and help its economy bounce back from the financial crisis as soon as possible.

The IPI cut in the furniture sector will cost the government a total of 217 million reais (125.4 million U.S. dollars), while the cut in the construction supplies sector will cost another 686 million reais (396.5 million dollars).

Source: Xinhua
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