Increased spending in the country with the additional cost of energy has the consequence of raising taxes, especially the PIS (Program of Social integration)and COFINS (Contribution for the Financing of Social Security )on imports and on  the distributors cosmetics manufacturers .

The collection of PIS and COFINS in the cosmetics sector, made today by the manufacturer, will be the responsibility of distributors.

The goal is to prevent tax planning, according to the government, which reduces the collection of the sector. The elevation of PIS and COFINS on imports should ensure a rebalancing of the tax after the Federal Supreme Court (STF) last year,  considered unconstitutional the inclusion of ICMS (Tax on Circulation of Goods and Services) in the calculation of imports.

Thus, the IRS was obliged to remove the VAT from this calculation, but with the change, the domestic product was at a disadvantage in relation to the imported.