Brazilian steel association, IABr, plans to file a lawsuit in order to claim the benefits of a pay-back tax program called Reintegra. The Brazilian steel association is said to be looking for a law firm and should then file a lawsuit.
At several events IABr has attended, including the Brazil Steel Congress this year, the association has defended Reintegra as the key to stimulating the local steel sector, which faces its worst crisis ever.
The pay-back exports program was set to increase from 2 to 3 percent, but the increase was unexpectedly canceled.
IABr said it will question why Brazil did not increase the rate, since it was forecasted to rise to 3 percent in 2018 under certain laws.
Additionally, IABr claims the Brazilian government is not paying back taxes the local steelmakers already paid within the Reintegra program.