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The virtual event is a partnership between the Brazilian Agriculture and Livestock Confederation (CNA) and the JOTA website and will be broadcast on the CNA and JOTA YouTube channels.
According to Renato Conchon, coordinator of the CNA Economic Center, the increase in the sectoral tax burden that changes in the legislation of some proposals should bring means an increase in production costs, in a scenario in which producers are already under pressure with the increase in costs.
“Two years ago we made an estimate that if the reform was approved as it was, beef cattle prices, just one example, would rise by 23%. But two years have passed and, if we recalculate today, we will certainly have a higher number. So, in our view, increasing the tax burden in this scenario will be harmful.”
The panel will address the texts of the reforms currently being discussed in the National Congress. Among the concerns is the proposal for a single tax rate.
“The issue of the single rate is an important point. Most countries do not use it and those who did are returning to the differentiated tax rate model. This is an important point that we will certainly address in the panel. In our view, food, medicine and basic services, such as health, education and public transport, must have a different rate. Or you increase the price of these products a lot, especially for the needy population, due to taxation”, says Conchon.
The specific points of each of the projects under discussion at the Congress will also be addressed at the CNA seminar.
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“The most sensitive topic in PL 3887/2020 is PIS/Cofins. In PECs 45 or 110, the most sensitive point is the single rate. Here we are talking about taxation on consumption. In addition to these proposals, there is the income tax reform project, and we also have some considerations about it. Although for the individual producer the project as approved by the Chamber does not bring harm, it impacts the agroindustry. These are the nuances we want to address.”
In relation to PEC 110, a text that is more likely to be approved by the current legislature, there is still concern about mandatory monthly accounting for individual rural producers, which will be required. The change is considered unfeasible for long-cycle producers, such as coffee growers, for example.
Moderated by Renato Conchon and a journalist from JOTA, the panel will have as speakers Rebeca Müller, lawyer and master in Tax Law and Economic Development from IDP (Brazilian Institute of Education, Development and Research) and former advisor for Tax Reform in the Chamber of Deputies and Pedro Júlio Sales D'Araújo, lawyer, doctor in Economic, Financial and Tax Law from the Faculty of Law of the University of São Paulo (USP).
By: CNA | Source: agrolink
