BMW Seeks IPI Tax Cut to Build Factory in Brazil, Estado Says
Bayerische Motoren Werke AG (BMW) asked Brazil’s Trade and Development Minister Fernando Pimentel to reevaluate the increase in the so-called IPI tax as it considers building a factory in the country, O Estado de S. Paulo reported, citing Henning Dornbusch, chief executive officer of BMW’s Brazil unit.
The Brazilian government’s decision to raise the tax on cars with less than 65 percent of their parts produced in Brazil may lead BMW to build its plant in China, India or Russia instead, according to the newspaper. The company will announce its decision by November, O Estado said.
The Ministry of Trade and Development’s press office said Pimentel hasn’t made any commitment relating to BMW’s request because the decision must be made in conjunction with Finance Minister Guido Mantega, O Estado said.
To contact the reporter on this story: Karen Eeuwens in London at keeuwens@bloomberg.net
To contact the editor responsible for this story: Telma Marotto at tmarotto1@bloomberg.net
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