Within the fiscal adjustment package launched by the government this year, the Senate passed by symbolic vote, on Thursday (28), Provisional Measure 668, which increases taxes on imported goods, including cosmetics and pharmaceuticals.

The increase is 1.65% to 2.1% the PIS-Pasep (Social Integration Program) tax rate  for the entry of goods imported into Brazil. For Cofins (Contribution to Social Security Financing), the rate increased from 7.6% to 9.65%. The measure now awaits presidential approval.

The expectation of the government is that with the Measure the annual revenue   of the category increases by R $ 1.19 billion (about US$ 380 million) from 2016. This year alone, the impact will be of R$ 694 million (about US$ 220).

According to the Senate, the initiative also aims to protect the domestic industry, already impacted by the fiscal adjustment. Since May 1, entered into force a new tax model for cold drinks such as beer, soda, energy, among others. The new tax will increase the sector’s burden, on average, 10% by the end of this year.

The tax increases should impact, in general the final product price, ie the price to the consumer.