Manaus buy coke

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Manaus buy coke

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Manaus buy coke

Their competitors, the Department of Federal Revenue, the body responsible for taxation in the country, and health organizations, want to dismantle an operation that involves receiving credits for taxes that have never been paid. Many incentives are given to companies that produce soft drink concentrates syrups in the Manaus Free Trade Zone, which is a free-trade area established in the Brazilian Amazon. Nor do all of the incentives appear to be sufficient for the companies in the sector: tax invoices that we have obtained indicate over-invoicing. The situation results in an unusual occurrence: an economic sector that provides a loss in government revenue. The result is that the Brazilian tax on soft drinks, already low, ends up even lower. Recofarma, a subsidiary of the multinational in Manaus, sells the intermediary product to bottlers who dilute it in water and gas, package it and take care of distributing it. It was in the s that the leading companies in the sector started to transfer production of concentrates to the Amazon. The Department of Federal Revenue initiated legal proceedings to contest the activity, but was only partially successful. Therefore, we have a reliable basis for comparison. In other words, at best, the domestic market price is double that amount and, at worst, more than six times the amount. There is an even stranger case: the infusion known as mate. This is a product that theoretically cost 8. The chemical sector, dominated by the production of syrups, is by far that which has progressed the most in terms of value since the s. Whereas the number of workers increased tenfold between and , revenue in dollars increased fold. According to the most recent public survey, Recofarma has employees, while Arosuco, owned by Ambev, has Looking at public data, we saw that the chemical sector is always second in terms of state tax refunds, despite not always being second when it comes to tax payments. In response to legal proceedings launched by Coca-Cola, the body asserted that there was no logic to receiving compensation for tax that has never been paid. The activity in the Free Trade Zone leads to a curious situation: we see a business sector that wants higher taxes because the higher the rate, the more credit it receives. In , the Folha de S. A document we obtained illustrates that the current senator used his public office to obtain business benefits. The meeting took place at 3 p. At that time, the regional producers were successful in changing the tax regime, which benefitted the major players in the sector. However, three days after enacting Law The Department of Federal Revenue was hoping to guarantee a gradual reduction in the disparity and that the problem would be resolved by Once again, however, the political arena took precedence over the technical arena. On 30 May , a decree by Guido Mantega indicating the reduction of the gap was published in the official journal of the Government of Brazil. Nevertheless, five days later, the government republished the decree, claiming that there had been a mistake. What actually happened was that the tax scale for packaging was changed completely. The government put off until a correction that should have been made in The meeting was requested the previous day and did not feature in the official agenda. The same situation arose on a number of other occasions. In the second half of , the minister signed a new decree further postponing the correction of the distortions. The aim then was to reach at a level below that expected for On 30 April , Mantega brought about a slight readjustment, which was revoked exactly one month later on the grounds that the increase would put pressure on prices during the World Cup in Brazil. The case became public because not everybody is winning. The Association of Soft Drinks Manufacturers of Brazil Afrebras was created in the previous decade to dispute the tax on the sector, seen as benefitting the major companies. No, they are not more efficient. Abir denies that the operations in the Free Trade Zone benefit only Coca-Cola and Ambev, claiming that any company can avail itself of the generous incentives. However, there are some questions. First, picking up the raw material in Manaus and transporting it to the south or south-east of the country, where most of the factories are located, is costly. Second, since tax credit is paid, whoever buys more asks for more, and is therefore more powerful. The credits moderately benefit a small-scale producer but, for large-scale producers, they are a billion-dollar incentive. They can be transformed into subsidies to lower prices and destroy the competition, into advertising to increase market share, and into resources to buy space on supermarket shelves and undermine rival companies. According to Afrebras, there were soft drinks manufacturers in , and in In , the small companies were producing 2. During the same period, which coincides with the peak of the credits in the Free Trade Zone in Manaus, the large companies went from 5. The debate could have taken a different course 20 years ago. I was defeated. I was defeated, yet unconvinced, because the court was wrong. Jobim had recently arrived from the Ministry of Justice under Fernando Henrique Cardoso, in a contentious move from the Executive to the Judiciary. He took to the court a business vision of the case, disregarding the Constitution. According to information, the syrup producers increased their value in order to obtain greater exemptions. Coca-Cola put syrup production in the Free Trade Zone. There was a controversy between the two and Jobim was focusing on that. His son, Alexandre Kruel Jobim, has been the president since of Abir, which is headed by the two multinationals. He claimed recently that the sector suffered from bullying. He warned that any increase in tax without correcting the problem would be useless, as it would be offset by tax credits. At the end of October, the Department of Federal Revenue took another step towards putting a stop to the loss of revenue, issuing an interpretation according to which the companies have produced a concentrate kit and not the concentrate itself in the Free Trade Zone, which would make it possible to prevent the private sector from receiving compensation. Coca-Cola and Ambev stated that Abir would issue a position on the case. In turn, the association issued a general comment on the situation and did not justify the difference in value between concentrate sold on the domestic market and concentrate exported. Jereissati ignored the requests made by O joio e o trigo. Acesso em: 21 out. In english. Revisar consentimento. Fechar Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. Necessary Necessary. Necessary cookies are absolutely essential for the website to function properly. 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Manaus buy coke