The federal government reversed the benefit of the payroll tax relief, which had been extended to furniture manufacturers in 2012, allowing them to collect the social security contribution on gross annual sales (excluding exports), replacing the percentage of 20% on the payroll. With the publication of this interim measure, the collection of the furniture sector increased from 1% to 2.5%.
Although this measure is part of the federal government’s expenditure control policy, it was introduced in a very bad time for the furniture industry – especially for furniture center of Bento Gonçalves, which is having the worst unemployment rate since 2007, when the Ministry of Labor began to assess this kind of data.
The President of Sindmóveis, Henrique Tecchio, points out that the association is opposed to raising tax rates, considering the existing increased tax burden and all the difficulties posed by the red tape, high logistics and production cost. "The package with benefits to the industry was one of the most publicized by the government and now, less than two years later, it is being reversed. In addition, measures that restrict consumption will have negative impacts on the Brazilian furniture sector, which is already going through the worst crisis in at least 10 years," he says.
The new percentage will take effect on June 1st and companies can choose between this calculation basis or return to the old 20% on the payroll. Sindmóveis believes that most furniture companies in Bento Gonçalves will eventually return to the old payment model, which in many cases will nearly double the amount currently paid.
Minha Casa Melhor Program is cancelled
Also at the end of last week, the government suspended new applications for the "Minha Casa Melhor" program. Established in 2013, the program makes available to all beneficiaries of the "My House, My Life" program – who have no pending payments – a credit of R$ 5,000 for the purchase of furniture and home appliances.
Although Caixa Economica Federal Bank did not justify the cancellation of the program, those who already have the card can continue using the credit. The program was devised to respond to a request made by the furniture industry five years ago, during Movelsul Brasil in 2010, when a project to include furniture in the housing financing programs was presented to representatives of Caixa Federal. Afterwards, other initiatives were developed including the Cred Móveis Caixa and Móveis Card program.
