Confaz maintains ICMS discount on agricultural inputs

Today's Official Gazette of the Union (5/10) brought news awaited by Mato Grosso farmers. Agreement 133 was published by the National Council for Financial Policy (Confaz), extending the validity of the discount on the Tax on Circulation of Goods and Services (ICMS) rate charged on the main agricultural inputs.

The measure is the result of intense action by the Association of Soy and Corn Producers of Mato Grosso (Aprosoja), as well as Aprosoja Brasil, aiming to clarify Confaz about the importance of maintaining the discount. Under the old rule, the 60% reduction in ICMS would now end on October 31st – a date that had left farmers in a state of alert. Now, the discount will be valid until April 30, 2019.

“It’s a reason to celebrate. If the extension were not authorized, doubts about soybean planting for the 2017/18 cycle motivated by climate issues would be compounded by concerns about the increase of more than 4% in the cost that farmers currently have with inputs and fertilizers”, he notes. Endrigo Dalcin, president of Aprosoja.

The vote in favor of extending the discount by the Secretary of State for Finance of Mato Grosso, Gustavo Oliveira, was fundamental to the result. “We strengthened our relationship with the secretary, providing projections and technical studies that showed the impacts on grain agriculture. This dialogue was essential for understanding the current situation of farmers in Mato Grosso”, says Endrigo.

The mobilization of Aprosoja in Mato Grosso was reinforced with the action of Aprosoja Brasil and the Parliamentary Agricultural Front (FPA), which took the issue to deputies and secretaries of other Brazilian states. “The coordination of actions in Brasília is vital for us to continue representing our members”, emphasizes Endrigo Dalcin. The measure covers the trade of various products, such as seeds, pesticides, feed, mineral salt, etc.