Final text of the tax reform foresees new advances for agriculture

Final text of the tax reform foresees new advances for agriculture

Senate should vote on milk bill this Thursday

By Rafael Walendorff
— Brasilia

The IBS Management Committee and the Federal Revenue Service, every 120 days, will be able to review the list of products for the manufacture of pesticides, which will have a 60% reduction in the standard rate — Photo: Wenderson Araujo/CNA

The Federal Senate is expected to vote this Thursday (12/12) on complementary bill 68/2024, which regulates the tax reform. The final version of the text approved this Wednesday (11/12) by the Constitution and Justice Commission (CCJ) brought new advances to the agricultural sector, in the view of Eduardo Lourenço, from Maneira Advogados.

One of the points he highlighted was the inclusion, in the fast track system, of “products intended directly for the manufacture of agricultural pesticides”. With this, the IBS Management Committee and the Federal Revenue Service, every 120 days, will be able to review the list of these inputs, which will have a 60% reduction in the standard rate.

The text also provides that products will not lose their “in natura” quality in cases where they require packaging in preservation packaging, with the addition of concentration or preservatives. Another advance was the suspension of taxation (IBS and CBS) also on sales to taxpayers who promote industrialization destined abroad.

One of the points discussed in recent days was the taxation of vegetable oils. The text that will be analyzed by the plenary only provides for babassu oil in the exempt basic food basket. All others will be on the list of items with tax reduction.

The writing was the result of an agreement with the productive sector and the ruralist bench. As a result, there will be the same tax treatment for soybean, corn, cotton, canola, sunflower and other oils. The measure also “alleviates” the generation of presumed credits, an issue that still concerns companies about their use.

"The important thing is that all products, with the exception of babassu oil, will have the same tax treatment. This brings about the rationalization of tax treatment for identical products. Taxation cannot be the differentiating factor between products. The 60% reduction guarantees the current tax burden on products and also ensures the use of credits from production chains, avoiding tax residue, which would become a cost for the consumer. Everyone wins", said Eduardo Lourenço.

The text by senator Eduardo Braga (MDB-AM) also included yerba mate, flour, pasta and formulas in the basic basket with total exemption from taxes. Another change made yesterday was the forecast of the carbon footprint, in the cradle-to-grave cycle, for the purpose of graduating the selective tax rate.

Another advance highlighted by the lawyer was the inclusion of environmental services for the purpose of reducing the IBS and CBS rates by 60% and the exclusion of the selective tax on non-alcoholic drinks, including juices.

The project also provides for a single phase of Contribution to PIS/Pasep and Cofins for ethanol.

https://globorural.globo.com/economia/noticia/2024/12/texto-final-da-reforma-tributaria-preve-novos-avancos-para-o-agro.ghtml