The Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry – Abihpec, released data of nominal growth of 5% in the revenues from January to October 2019 of the personal hygiene, perfumery and cosmetics (HPPC) industry, in comparison with the same period 2018. In real terms, the sales expansion was 0.69%.
The modest growth, according to the association’s executive president, João Carlos Basilio, is an effect not only of the country’s economic difficulties, but also of a brutal increase in the tax burden of the personal hygiene, perfumery and cosmetics sector in recent years.
“We are the 2nd most taxed sector in the country today and, amidst the economic recession scenario that has persisted for years in Brazil, we have made constant efforts to overcome the difficulties present throughout our chain, in order to continue offering essential items to society for the maintenance of health and well-being “, he explained.
Abihpec sees with concern the proposal for Tax Reform presented by the Federal Government in November. According to Basilio, it can lead to an increase in the burden on the sector and, therefore, it can cause a rise in the prices of essential items for the population and present in the basic consumer basket, such as toilet paper, cream and dental floss, mouthwash and bar soap, among others. Currently, these products are exempt from PIS, COFINS and IPI.
“In addition to being essential to the population, it is necessary to understand that the HPPC sector generates employment and job opportunities, income and income for the country’s development, and that this potential could be better used, with a more favorable environment for business, and incentives to expand production “, reinforced Basilio.
Amid the scenario of uncertainties regarding the new tax reform, the expectation for 2020 is that the personal hygiene, perfumery and cosmetics market will grow 5.1% (nominal).