Front presents amendments to maintain tax burden on agribusiness

A Parliamentary Front da Agropecuária presented two amendments to the tax reform proposal (PEC 45/19). The first aims to maintain the tax burden at the same current level, and the second deals with maintaining the right not to tax exports with the guarantee of refund of tax credits.

“The objective is to respect the minimum guarantees of rural producers and the entire production chain of the sector that contributes most to the economy, maintaining the competitiveness of our products compared to foreign ones”, explained the vice-president of the front, deputy Sérgio Souza (MDB-PR).

According to him, the essence of tax reform is to reorganize taxes to reduce bureaucracy. “We cannot allow taxation of exports or an increase in the tax burden on the agricultural sector, this would increase the cost of production”, stated Souza.

The parliamentary front argues that the majority of rural producers are individuals and, therefore, do not contribute IPI, ISS, PIS e Cofins. However, they would be subject to the Tax on Transactions with Goods and Services (IBS) at the same level as other sectors.

IBS is created by the proposal to replace IPI, PIS, Cofins, ICMS and ISS.

Simplification without augmentation

The president of the collegiate, deputy Alceu Moreira (MDB-RS), recognizes that the reform is important and necessary, but reinforces that the proposal cannot burden the country's productive activities. “It is through a clear and predictable tax system that the biggest crime committed in public service will be avoided: charging from those who don’t owe it to pay those who don’t deserve it.”

Now the president of Special Committee of Tax Reform, deputy Hildo Rocha (MDB-MA), stated that, by simplifying the system, the result will be the generation of jobs and income, in addition to increasing the GPD.

“The reform will also reduce costs for companies that, sometimes, have to hire another company just to be able to pay their taxes,” added Rocha.

A PEC 45 / 19, that has already received more than 120 amendments, is being analyzed by a special committee and will later be forwarded to the plenary of the Chamber.