Tax incentives in the Sudam area should exceed R$ 6 billion in 2023
“Both Sudene and Sudam are of fundamental importance for the development of the Northeast and North regions of the country. These superintendences act exactly in this promotion, in the development and in the economic growth of the companies located there and also so that projects can be made viable from an economic point of view”, says Bergo.
Among the tax incentives granted to companies operating in the areas where Sudene and Sudam operate is a 75% reduction in income tax (IR) based on profit, provided they have an installation, expansion, modernization or diversification project within the scope of the sectors of the economy considered priorities for the development of the region.
In addition, the legislation provides for the possibility of depositing 30% of the IR amount owed by the undertakings, plus 50% of own resources, for reinvestment in modernization projects or the purchase of equipment. However, incentives are only valid until December 31, 2023.
Extension
With the aim of extending this deadline, federal deputy Júlio Cesar (PSD-PI) presented the PL 4416/2021, which extends the validity of the benefits until December 31, 2028. César Bergo recalls that Brazil is a country marked by economic inequalities and highlights the importance of extending the benefits for the development of the North and Northeast. For him, the end of incentives will have negative impacts on the regions.
“With regard to maintaining the subsidy, and approved until 2028, it would really be very important. You will be able to have new projects, you will be able to generate jobs and income in that region and also retain labor in those regions, thus helping to avoid disorderly migration. You generate jobs in the region and contribute to the development of each state and you then have a gain in the economy of the country as a whole”, says the economist.
With a favorable opinion from the rapporteur, deputy Eduardo Bismarck (PDT-CE), PL 4416 is ready to enter the voting agenda of the Constitution, Justice and Citizenship Commission (CCJC) of the Chamber. If approved, the text will be sent to the Senate for analysis. Federal deputy José Medeiros (PL-MT) points out that Brazil needs to achieve equality between states. He recalls that regional differences are an important fact to be considered for the maintenance of incentives.
“These states that are included in this region are developing states and companies don’t always go to these regions. So, these are states that need to be supported by the Union and we defend that the incentives continue until a tax reform comes along that can treat equals and unequals equally according to their inequality. Because at this moment the only thing that is giving some principle of equality are tax incentives”, argues the congressman.
Sudene operates in all states of the Northeast region, in part of Minas Gerais and Espírito Santo. Sudam’s operations cover the states of Acre, Amapá, Amazonas, Mato Grosso, Rondônia, Roraima, Pará, Tocantins and part of Maranhão. The objective is to promote, through tax incentives, the inclusive and sustainable development of these areas.
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By Brasil 61
