In Portuguese Tax on Industrialized Products is named Imposto sobre Produtos Industrializados and often referred to by the abbreviation IPI.
The Tax on Industrialized Products applies for national and foreign products which have been modified in some way for consumption or use. The basis of calculation is the retail sales price in Brazil; for imports, it is the sales price of the good and the import duty, plus other required fees.
IPI is used as incentive for or discouragement of the consumption of some goods, and it has been decreased for the sale of products such as the low-end appliances, furniture and cars. The rates vary from zero to 20%.