Investor Presentaiton
2016 Braskem | Annual Report
77
Government
G4-EC4
Open and transparent dialogue
with all stakeholders and
proposing solutions that develop
not only the Company, but also
other sectors of industry and the
country's economy, is something
that is a part of Braskem.
Always motivated to offer solutions
to the sector's challenges, in
2016, the Company continued
several actions to defend the
competitiveness of its production
chain, as well as the search for
solutions to challenges in the
areas of logistics, infrastructure,
energy, and topics related to
industrial policy still affecting
Brazil's growth.
One of the topics that remained
on the discussion agenda was
preserving the Special Regime
of the Chemical Industry
(Reiq). Approved by the Federal
Government of Brazil in 2013, this
demand remains one of the pillars
for the recovery of the sector's
competitiveness through
Thousand BRL
Total tax incentives /credit¹
2014
2015
2016
125.7
173.9
87.5
PRODESIN ICMS
60.0
71.6
78.8
PIS-
- REINTEGRA
65.7
102.3
8.7
Grants for investments, research and development,
and other relevant types of concessions²
1.6
1.6
FINEP
1.6
1.6
Cofins exemption for the purchase
of raw material for first and second
generation petrochemicals.
Reintegra, a government program
that aims to return a percentage of
the taxes on the production chain
to certain segments of exporters,
is still working at a lower rate than
expected by the sector since it
underwent a revaluation in 2015.
Created in 2011 as a temporary
mechanism and established as
permanent in 2014, Reintegra
provides mobile rates that may
vary between 0.1% and 5%
on the income of companies
from exports. In 2015, the
1% rate was set to 0.1%, a
percentage that is valid until
2016. Reintegra is expected to
reach 2% in 2017, returning
to 3% in 2018, according to
the decree established by the
Federal government.
FINEP Award
ECAS (financial aid from export credit agencies)³
1. Tax incentives/credits: Restitution of federal taxes by the Reintegra program and tax incentives of ICMS, granted by the Government of
Alagoas, through the Integrated Development Program of the State of Alagoas - Prodesin.
2. Grants for investments, research, and development: FINEP awards and financing for innovation projects.
3. Financial assistance from ECAS (credit and exporting agencies): Risk insurance operation with Nippon Export and Investment Insurance
(NEXI - Japanese agency) for investment in maintenance and in the butadiene project.
OPEN DIALOGUE
Among several other associations that discuss new paths
for the Brazil's macroeconomic policies, Braskem actively
participates in discussions forums in petrochemical entities,
industry representatives, and other sectors of the economy:
• Brazilian
Chemical Industry Association
(ABIQUIM): a private law entity structured to carry out the
statistical monitoring of the sector, promotes specific stud-
ies on the activities and products of the chemical industry,
follows changes in legislation and advises associated com-
panies on economic, technical and foreign trade issues.
• Brazilian Association of the Plastic Industry (Abi-
plast): focuses on the processing industry.
• National Industry Confederation (CNI): the highest
body of the industrial trade union system, focused on de-
fending and representing the industry by promoting an
environment conducive to business, competitiveness, and
sustainable development in Brazil.
• Brazilian Business Council for Sustainable Devel-
opment (CEBDS)
• Federation of Industries of São Paulo (FIESP): pri-
vate law entity focused on guaranteeing Brazilian compet-
itiveness, with demands for lower production costs and
containing deindustrialization, guaranteeing the country's
economic and social development.
• Federation of Industries of the State of Bahia
(FIEB): private law entity focused on the growth, mod-
ernization, and improvement of the competitiveness of
the industry in the State of Bahia, and sustainable devel-
opment of the State
• Applied Tax Studies Group (GETAP): a nonprofit enti-
ty dedicated to assisting the improvement of Brazilian tax
legislation, through suggestions regarding its simplifica-
tion and rationalization.View entire presentation