Senate Committee approves tax exemption for corn bran and oil
“Which implies exemption from the sale of products. So these products, when sold, the revenue earned will not be subject to PIS and Cofins. What’s more, companies that sell either on the domestic market, or that export, will also have presumed credit in relation to this sale”, he explains.
Menke points out that this measure tends to encourage the commercialization of the products involved, as it will reduce their cost and the tax burden.
“It encourages the sale of products, because in addition to selling without taxation, the company that makes it, that sells it, now has a presumed credit, which is the incentive to sell these two products”, he adds.
According to the Brazilian Agricultural Research Corporation (Embrapa), corn is grown in almost the entire Brazilian territory, with around 77% of the planted area and 92% of production concentrated in the South, Southeast and Center-West regions. The highlight is the South region, with 42% of the area and 53% of production.
Among the municipalities, those that stand out with corn production are Sorriso (Mato Grosso), Rio Verde (Goiás) and Formosa do Rio Preto (Bahia), points out the Brazilian Institute of Geography and Statistics (IBGE).
Economy
Fernando de Aquino, member of the Economic Policy Commission of the Federal Economic Council (Cofecon), explains that this PL implies a reduction in revenue for the Federal Government.
“The agricultural sector already has a lot of credit and tax benefits and a specific reduction in these would only be justifiable with the prospect of a very satisfactory increase in employment or productivity”, points out Aquino.
For the specialist, the rural land tax, paid by rural landowners, is already low, so there was room for an increase in tax revenue.
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By Brasil 61
