Brazil will maintain its reduction of the IPI tax on certain consumer goods, Finance Minister Guido Mantega said.
The tax cut on furniture to zero from 5 percent will be extended for three months instead of expiring tomorrow, Mantega said to reporters in Sao Paulo. The tax on refrigerators will be lowered from 15 percent to 5 percent, on stoves from 4 percent to zero, and on larger washing machines from 20 percent to 10 percent, all for two more months, Mantega said.
The tax cuts on appliances, which first went into effect Dec. 1, have been successful in boosting sales, Mantega said. The sectors benefiting from the tax breaks have committed to maintaining employment, he added.
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