Follow us twitter facebook
Edition: Brazil
Click here to subscribe toour free weekly newsletter click here
Industry buzz

Brazilian cosmetics industry forecasts price increases up to 12% above inflation

The Brazilian Association of Toiletries, Perfumes and Cosmetics (ABIHPEC), presented a study by consulting firm evaluating the main impacts on the industry and the consumer of the application of the Tax on Industrialized Products (IPI) to retailers.

"The expansion of the collection of the Tax on Industrialized Products (Imposto sobre Produtos Industrializados - IPI) to the toiletry, perfumery and cosmetics retail sector will rise prices up to 12% above inflation. Studies also predict that the new IPI model could eliminate up to 200,000 job opportunities and make sales fall by 17% in 2015. Should these forecasts be confirmed, the ripple effects could paralyze sectorial investments in several areas," said João Carlos Basilio, President of ABIHPEC.

João Carlos Basilio, President of ABIHPEC

João Carlos Basilio, President of ABIHPEC

According to ABIHPEC, the cosmetics industry currently employs over 4.8 million staffs, 80% of them being female employees. "The decrease of sale and worsening of the retail environment will certainly lead to layoffs and a reduction in the number of jobs all along the chain of production and sales, with significant impact on the number of jobs and the income of workers," concluded Joao Carlos Basilio, President of ABIHPEC.

The Presidential Decree 8393, published in the Brazilian Official Gazette (Diário Oficial da União), provides tax increases on perfume, makeup for lips, nails, eyes and face, skin care products, shaving preparations (before, during or after), hair styling products, and others.

© 2015 - Brazil Beauty News - www.brazilbeautynews.com

latest news
Focus
Luxe Pack New York rescheduled to September

Luxe Pack New York rescheduled to September

Amid the latest developments of the Covid-19 epidemic in New York and the USA, the Luxe Pack management team has decided to postpone further the event to September 15th and 16th, 2020. The venue is unchanged: Jacob K. Javits Convention Center (Hall 1B). With these new dates, the show will be almost concomitant with the MakeUp in...

read more
Experts’ views
Radical reinvention : Disrupting the next decade of beauty

Cosmetics Inspiration & Creation
Radical reinvention : Disrupting the next decade of beauty

Beauty is an ever-changing industry. Yet some changes make more of an impact than others. The more society changes, the more these changes cascade into the Beauty market. During the last MAD Cosmetics Innovations conference, organised by Premium Beauty News in Paris, Leila Rochet, Founder of Cosmetics Inspiration & Creation,...

read more

Features