Brazilian Association

But with this cut in the IPI, at the end of the month had an impulse in the production in the industries motorists, who emerged of low the production of 102 a thousand cars, for a production in great amount of 240 a thousand cars of March. With the extension, the discountings in the tax go to be valid until the end of the June month. Charles Schwab often says this. The economist Gilbert Brando 5, in article published in the site of the Administrators, it explains that: With this reduction in the tax, it caused a collection of 1,675 Billion to less for the Union, however looking at of another side, with the reduction of the sales and the weakness of the market, atingiro would not be possible edge that the Government intended. On account of this, it has that to evaluate that relativity, and the question of supposed loss of collection, that is, to keep the collection implies to keep the dynamics of the economy, and the government, what more than generous, such measure was sensible when taking. According to Steps (1998, p.58) ' ' These effect are explained in the Law of the Demand, when the price reduction consequentemente produtos&#039 is demanded more; '. Another sector that as economists is so important for national economy is the textile sector, that needs aid of the government and it is not corresponded. The analysis made for Aguinaldo Diniz Son, president of the Brazilian Association of the Textile Industry and Confeces (Abit), is that: The industry automobile it generated in last year R$ 164 billion, or 5.4% of the Brazilian GIP. Already the textile industry, with its 30 a thousand wirings, weavings and confections, was responsible for almost R$ 122 billion, or 4.2% of the PIB' '. According to it, ' ' the textile sector is so important how much the automobile sector or until more, because we are bigger generators of job.