Rio de Janeiro Government Reduces Tax, Metalworking Sector to Gain Thousands of Jobs

Decree Signed by the Governor of the State of Rio de Janeiro Provides for Tax Reductions and Cities Like Volta Redonda and Itaguaí Are Already Celebrating

The Governor of the State of Rio de Janeiro, Wilson Witzel, answered the long-standing desire of entrepreneurs and leaders in the metalworking sector by signing a decree yesterday, Tuesday (10/15), at the Palácio Guanabara, the seat of the State Government, to provide tax incentives for the sector. Entrepreneurs Looking at the Coast of São Paulo, Check It Out!
Cities like Volta Redonda, one of the largest steel chains in the state, were represented by their main authorities, and the president of Nuclep, Admiral Carlos Seixas, located in Itaguaí, were present and celebrated during the event.

According to the signed decree, the Tax on Circulation of Goods (ICMS) is reduced from 18% to 3%, which will lower the tax built into the purchase of products in the segment, with the aim of attracting industrial activity to the municipalities in Rio de Janeiro.

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Steel City Celebrates

The mayor of Volta Redonda, Samuca Silva, spoke about the importance of the governor’s decree, “This is a great moment for Volta Redonda and for the entire State of Rio. I want to thank Governor Wilson Witzel who understood this necessity. Seven companies in the steel chain have already signed letters of intent to establish themselves in Volta Redonda. The expectation is that between 3,500 and 4,000 direct jobs will be created in the municipality,” he said.

The demand for a reduction in ICMS had been negotiated by sector entrepreneurs since at least 2017, the mayor assured, “Volta Redonda resumes its vocation as the Steel City. The steel that today goes out raw to industries in other states will be used here, where a complete production chain will be developed. And we will not stop here; we need to think further, the South Fluminense needs to expand infrastructure,” the mayor assured.

Governor Wilson Witzel spoke about the decree, “The tax incentives do not decrease revenue. On the contrary, they encourage more companies to establish themselves, generating jobs and income.

The president of CSN, Benjamin Steinbruch, also spoke on behalf of the companies and emphasized that there will be investments from the sector in Rio de Janeiro. “I am here honored to speak on behalf of dozens of entrepreneurs. Thank you, governor, for accepting this long-standing request. You understood what the north of the business class is: to have equal working conditions, stability, and predictability. We need to have the tax on the added value. Rio de Janeiro will gain taxes from this because we will have more companies in the state, generating more jobs and more income,” he said.

Itaguaí Also Celebrates

Itaguaí, another city in the South Fluminense and a prominent player in the state’s metalworking industry, also celebrated, and the president of Nuclep, Admiral Carlos Seixas, spoke about how ICMS made products more expensive, “Undoubtedly, this reduction will open new fronts and opportunities for us, in addition to contributing to our ability to invest in the region’s development.”

But Nuclep has other reasons to celebrate. The company is celebrating its first place at the end of the first Commercial stage of the bidding process for Petrobras for the construction of a Regenerative Process DEA Tower at REGAP, in Betim, MG.

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