Page 106 - Anuário Abihpec

Anuário ABIHPEC 2016

The Brazilian Cosmetics, Toiletries and Perfurnary (CT&F) reflects how CT&Fs products are still considered
has tax issues as one of the main challenges for the superfluous, although essential for personal hygiene,
development of its business, due to the high rates on prevention of infectious diseases, effects of sunrays and
some products and the existence of different taxes and consumerwelfare. "Most ofthe products are established
contributions on sales, such as ICMS, at the state level, as superfluous, including sunscreen, deodorants,
IPI, PIS and COFINS, at the federal level. However, in the shampoo, liquid soap, hand towels, talcum, shaving
year of 2016, the CT&F sectors tax scenario had an even cream and combs, that is, items that are part ofa basic
worse outlook than in the previous year, due to another personal clean/mess" Said Simões.
factor - the increase in the ICMS tax burden in most In addition to the high tax burden, the high complexity
states, besides the effect ofthe significant increase in the of the tax system, particularly in relation to the ICMS,
IPI, started in May of 2015, with a drop in consumption should be considered, which in several states has the
for most of 2015 and 2016. ICMS prepayment for the tax substitution regime, in
The executive director of ABIHPEC, Manoel Teixeira which the industry anticipates, by estimate, the ICMS
Simões, explains how the industry suffered the impact that would be collected at the time of the retail sale
of the increase in the IPI. "At the time, the tax base to the consumer. As anticípation prevails in operations
for the Industrialized Products Tax was transferred to between states, the industrial or wholesaler must collect
the wholesale market, resulting in a tax on distribution, in advance to the state of destination, so it must search
advertising and sales promotion costs of the products. in more than 1,000 items of the RICMS, Regulation of the
The measure reached items thatare taxedata rate above ICMS, of each state, which rate, which estimate criterion.
15%, such as perfume, makeup, shaving preparation, nail It is even more complicated with the creation of Poverty
polish, lotions, skin creams and hair products (with the Reduction Funds in many states, and the taxpayer
exception ofshampoo and conditioner), " he said. should find out what criteria and ancillary obligations are
According to him, the increase in ICMS rates affected related to this Fund.
17 states (Alagoas, Amapá, Amazonas, Bahia, Ceará, In ercommerce,achannelthathasbeen growing overthe
Maranhão, Mato Grosso, Mato Grosso do Sul, Minas last few years, one more complication has been added.
Gerais, Paraíba, Pernambuco, Paraná, Rio de Janeiro, In interstate operations intended for non-taxpaying
Rio Grande do Norte, Rio Grande do Sul, Sergipe and consumers, the sending taxpayer must share the ICMS
Tocantins) and the Federal District. between the state of origin and the state of destination,

in order to identify the current rate in the destination, if
HIGHLIGHT FOR INCREASESINICMS RATES OVER 30%: there is a Poverty Fund, and collect in advance so that

the form follows the merchandise.
Minas Gerais: an increase of 125% for toothpaste (rate Other complications have been implemented, such as
of 12% to 27%); 50% increase for toilet soap, sanitary CEST - Tax Replacement Specifier Code -, collection of
napkin, single sheet toilet paper, and dental brush (rate the difference of internal and interstate rates, DeSTDA
from 12% to 18%), deodorant and cologne (rate from - Electronic Declaration of Tax Replacement and Rate
18% to 27%). Difference - for companies opting for the Simple, Import
Paraná: Increase in 2015 of 108.3% for sunscreen (rate Content Form, not including all electronic files being
from 12% to 25%); Increase of 50% (rate from 12% to created by SPED- Public System of Digital Bookkeeping.
18%): toilet soap, deodorant, shampoo, toothpaste, In order to explain this information for companies in
toothbrush, deodorant, toilet paper, sanitary napkin the industw, especially micro and small companies,
and diaper. Increase of 38,9% (rate from 18% to 25%): ABIHPEC has been following and informing member
perfume, cologne, makeup, hair dye and hair conditioner. companies about changes in the tax system and
Alagoas: a 37% increase for perfume, cologne, makeup, providing companies with support to meet the demands
nail polish, sunscreen, deodorant and hair preparations, they face through email or telephone inquiries. It also
Pernambuco: an increase of 47,1% for deodorant (rate provides training seminars to address the complex
from 17% to 25%). Brazilian tax system. Only by August 2016, the
Sergipe: increase of 47.1% for shampoo and deodorant Association's Tax industry carried out a growing volume
(rate from 17% to 25%). of information and assistance to the members of which:

354 tax change reports (44 monthly average); Receiving
For the other products in the five states above and in the 772 telephone calls for clarificatíon of doubts (97 on
other 12 states, increases range from 5,9% to 16%. average per month); 736 questions answered by email

(average of 92 per month).
For the executive director of ABIHPEC, the generalized
increase, coupled with high federal and state tax rates,

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