The Brazilian steel sector argued for reduced taxes during the Brazil Steel Congress, held in Brasilia, from August 20-21.
Sergio Leite, CEO at flats producer Usiminas and president of the directing council of IABr, the local steel association, said a tax reform in Brazil is “extremely important” for the segment, whose competitiveness before foreign steel products has been affected.
Leite said Brazilian steel products are less competitive due to high taxes on production and the final product, in addition to accumulative and complex taxes. Leite welcomed government’s provisional decree No. 881, which establishes Brazil’s “declaration of rights and economic freedom.”
Leite also presented government officials some of the local steel sector’s claims.
“To revitalize the industry, we request the adoption of measures to make the participation of the local segment into the oil and gas sector feasible,” Leite said.
He also requested access for the local steel sector to the nation’s concessions program, created under the former Temer administration. The program is also known as the Program for Partnerships and Investments (PPI).
Despite creating the PPI, the Temer administration also reduced the domestic-made supply of goods for the oil and gas sector.
Leite said prospects for the local steel sector in the export market are still negative due to protectionist measures by the steel-consuming countries.