Minas Gerais Agency | State Revenue ends powder soap counterfeiting scheme in the Metropolitan Region of Belo Horizonte

The Minas Gerais State Revenue Service, investigating tax fraud in the washing powder sales sector, discovered a product falsification scheme, which resulted in the “Deep Cleaning” operation, carried out this Friday (3/5). With the support of the Civil Police (PC), six people were arrested in a clandestine warehouse, in Ribeirão das Neves, in the Metropolitan Region of Belo Horizonte (RMBH), with around 40 tons of unsourced washing powder, being packaged in identical boxes to that of the market leader.

The investigations began at the end of February and, according to the State Revenue Inspection Superintendence, the objective now is to reach the clandestine manufacturers and businesses that purchased the merchandise for resale.

It is estimated that the counterfeiting scheme will cause millions of reais in losses to public coffers, as it competes in the market with original products, which collect tax.

“We work to ensure fair competition among taxpayers in our state. Based on analytical intelligence and audit investigations, the State Revenue arrived at this establishment that makes counterfeit Omo washing powder. These products are sold with false invoices”, revealed tax auditor Pierre Julião, who also highlighted the series of losses to society.

“Taxes are useful for the State to promote its services to society, and tax evasion harms the entire development of Minas Gerais. There are also adjacent losses, because it is not known what this chemical product actually is, whether it is suitable for use in washing powder or whether it poses a risk to consumer health and safety,” Julião highlighted.

Crime

Magno Machado, Civil Police delegate, stated that everyone involved will be held criminally responsible.

“Six people were arrested in the act and taken to the police unit, where a report of arrest in the act and offense will be made. We will do the expert work, and the investigative procedure continues to locate where this soap is being manufactured and what the product’s destination would be. The focus is to discover everyone behind the forgery scheme,” said the delegate.

Market leader

In the powder soap segment, Unilever, market leader with Omo soap, has a factory installed in Pouso Alegre, in the south of Minas. This year, the company announced investments of R$80 million for the expansion of another production line, Hellmann’s mayonnaise.

The extremely important company for the region has been in the city since the 1970s and currently employs 1,100 professionals, with 800 direct employees and 300 indirect employees.