Incentives to Sudam and Sudene are necessary to develop North and Northeast, assesses economist

Maintaining tax incentives in the areas covered by the Superintendence for Development in the North (Sudam) and Northeast (Sudene) is necessary for companies to remain in these regions, according to economist Renan Gomes Di Pieri.

“Institutions such as Sudam and Sudene were created with the aim of reducing regional inequalities, promoting local development and were widely used as instruments to increase public investment or subsidies for companies to invest in other regions outside the center-south of the country. “, says the economist.

Di Pieri highlights the positive impact on employment and income generation provided by the benefits, and defends the implementation of public policies that improve conditions for organic development. He argues that it is necessary to reduce bureaucracy, improve means of transport and invest in skilled labor. For the specialist, the tax reform can stimulate the development of all regions of the country.

“A tax reform that equalizes taxes and simplifies taxation does, as an expected impact, increase the efficiency of companies, freeing up resources for more productive activities, other than tax collection, and this can, yes, promote development in all areas. regions, particularly in the North and Northeast regions”, he points out.

Chamber approves project that extends tax incentives for Sudam and Sudene

The extension for another 5 years of the incentives was approved, last Wednesday (24), in the Constitution, Justice and Citizenship Commission (CCJC) of the Chamber, in a conclusive character – when there is no need for analysis in plenary. The text now goes to the Senate for analysis. Currently, the benefits are only valid until December 31, 2023. Congressman Sílvio Costa Filho (Republicanos-PE), a member of the board, celebrated the approval of the project.

“And in this industry week in Brazil, we know the importance of industry for the Brazilian economy, a sector that represents more than 21% of the Brazilian GDP, there are more than 300 thousand industries in Brazil, it generates jobs, generates income and it is essential that more and more the North and Northeast can receive investments and undertakings to be able to generate opportunities”, he says.

The project provides for a 75% reduction in income tax for legal entities in the areas covered by Sudam and Sudene and the possibility of depositing 30% of the amount of income tax owed by undertakings, plus 50% of own resources, for reinvestments in modernization projects or purchase of equipment.

Support from the industrial sector

The National Confederation of Industry (CNI) announced support for the extension of benefits for the Sudam and Sudene areas. According to the CNI, the incentives:

They increase the attraction of investments in the less developed regions of the country. This is because they offset, albeit partially, structural deficits in the North and Northeast regions.

They reward companies that set up in regions where conditions are more challenging for entrepreneurship and take on greater risk to make their businesses viable.