IPI taxation on mineral water containers is constitutional

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The Plenary of the Federal Supreme Court deemed constitutional the setting of Tax on Industrialized Products (IPI) rates above zero on demijohns, bottles and plastic lids used for packaging mineral water. In the virtual session that ended on /, the board unanimously granted an extraordinary appeal, with recognized general repercussions. She appeal was filed by the Union against the decision of the Federal Regional Court of the th Region, which, when judging an appeal based on a writ of mandamus, maintained the ruling in favor of a manufacturer of containers for mineral water in Recife and considered the reclassification of the product by the authority illegal. tax, in the category of "packaging of food products", with a zero rate, for "carboys, bottles, flasks and similar articles", which, as of Decree ,/, began to be taxed at a rate of %. The company's thesis was that the products are used to package mineral water, an essential commodity.

In the STF, the Union maintained that Greece Phone Number the taxpayer does not manufacture mineral water, but only the packaging, and that the company would be receiving benefits intended only for the food industries. In his vote, followed by the collegiate, the rapporteur, minister Luís Roberto Barroso, explained that the Federal Constitution (article , paragraph , item I) requires that the IPI be selective due to the essentiality of the product; In other words, the rate must take into account the importance and necessity of the good for the consumer and the community. This, however, does not imply the attribution of a zero rate to essential products. According to Barroso, the Executive Branch, in accordance with the guidelines of the law, can establish reduced rates, higher than zero, for products considered essential, without this violating the principle of selectivity. Therefore, there may be a reasonable gradation in the rates, depending on the essentiality of the product for the consumer. In the specific case, the minister noted that, even if it is accepted that the material produced by the company is exclusively used to package mineral water, during the validity of the decrees that approved the IPI incidence table, the types of mineral water may have rates that range from zero to %. Therefore, if not all types of water are subject to the zero rate, their packaging should not be either.



The minister also recalled the Supreme Court's understanding that the principle of selectivity does not imply immunity or complete relief from a given asset, even if it is essential, because other factors must be considered when setting the rate by the Executive and Legislative Powers, in a discretionary manner, however guided by contributory capacity, proportionality and reasonableness. The general repercussion thesis established was the following: "It is constitutional to set IPI rates above zero on demijohns, bottles and plastic lids, even if used for the packaging of essential products." With information from the press office of the Federal Supreme Court.According to him, the TST has understood that, when the company has already had the opportunity to assess the employee's skills, through previous hiring, the experience contract that succeeds it loses its nature, becoming the general rule of the temporary contract. indeterminate. The decision was unanimous. With information from the TST press office.