The Senate approves a proposal that retains the benefits for the soft drink industry

BRASÍLIA – The Senate approved Tuesday 10, the proposal that repeals the decree of President Michel Temer and maintains tax benefits for the soft drink industry in the free trade zone of Manaus. Incentives were reduced to part of the $ 13.5 billion "trucker's purse" bill, a package of government subsidies to reduce the value of diesel and end the strike in the freight sector.

The government's decision to suspend soft drink profits sparked intense lobbying by the economic team to try to reverse the measure. Meanwhile, the bank Amazonas, which does not want to lose the support of the beverage industry in the free trade zone of Manaus in the middle of the election year, has articulated a draft legislative decree to revoke the initiative of the executive.

allows companies that purchase concentrated soft drinks produced in the Manaus Free Zone to pay no tax because of the discounts they receive from the government.

The proposal to stop the government measure was presented by two Amazonian senators, Vanessa Grazziotin (PCdoB) and Omar Aziz (PSD), and had the support of the third state representative, The Senator Eduardo Braga (MDB), in an alliance that unites grbadroots and opposition. The trio advocated maintaining the benefit for the soft drink industry and garnered support in plenary. The proposal had 29 votes in favor, ten opposed and six abstentions

The text still has to go through the Chamber of Deputies, but since its presentation has ignited the alert in the economic zone. If there is a reversal in one of the measures adopted to offset the "truck bag", it will be necessary to resort to other initiatives to comply with the law on fiscal responsibility, especially since the Brazilian Court of Accounts (TCU)

The MDB, the party of President Michel Temer, has released the bench to vote for or against, according to the position of each senator. As a favorable argument to maintain an "advantage that already exists," Braga fired on the government, said that there was no 90-day notice required and criticized the 2030 road, announced the last week. "The government has just introduced a new tax exemption from the IPI on electric and hybrid cars, again giving tax incentives to the auto industry, without taking into account the public deficit problems," he said. said Braga

Senator Otto Alencar PSD-BA) called for the need for "environmental preservation" of the Amazon rainforest and said that incentives contribute to the preservation of the area, "which is the lung of the world and Brazil ". "Senators should come here with us to form ranks and approve this project, which is paramount for the preservation of human life in our country," he said.

The PSDB and PT also gave favorable guidelines for maintaining tax benefits. Senator Lindbergh Farias (PT-RJ), however, insisted on expressing her opposite opinion. "We give subsidies to Coca-Cola and Ambev, it's absurd," he said. He also said that he was opposed to policies that encourage industries that produce high-sugar foods, which he called "a policy of mbad poisoning."

"The government has just introduced a new IPI tax exemption on electric and hybrid cars, again giving tax incentives to the auto industry, without taking into account the issues of the budget deficit," said Braga .

The PSDB and the PT have already given favorable advice to the decree to maintain the tax benefits. Senator Lindbergh Farias (PT-RJ), however, insisted on expressing her opposite opinion. "We give subsidies to Coca-Cola and Ambev, it's absurd," he said. He also stated that he was opposed to policies that encourage industries that produce high-sugar foods, which he called "a mbadive poisoning policy."

The incentive program for the soft drink industry was created initiatives criticized by liberal economists for being expensive and not having the expected effects. Some of these incentives have been in the government's sights for some time. The economic team took the opportunity to include them in the package of measures that offset the cost of the diesel subsidy, but was under strong pressure to return. The Brazilian Association of Soft Drink Industries (Abir), linked to large companies, threatened with layoffs in the sector