Proposed legislation aims at taxing commodity exportsFeb, 14, 2022 Posted by Gabriel Malheiros
Bill 3885/25 establishes an export tax on commodities with a yearly-reviewed rate set by the Executive Branch.
The legislation draft under analysis at the Lower Chamber of the Brazilian Congress adds to the Decree-Law 1,578/77, which establishes the occurrence of tax exports.
The proposal defines commodities as “homogeneous goods, without or with a low degree of industrialization, with standardized characteristics, produced on a large scale and with prices referenced on commodity and futures exchanges in Brazil or abroad.”
According to the project, the annual rate review should be proportional to the variation in the average price of the goods traded. As a result, the rate will be raised or lowered in response to an increase or decrease in average prices in the international market, depending on supply and demand dynamics.
“Today, the Export Tax is rarely used in Brazil.” However, when applied to commodities, the project alters the situation and significantly expands the use of this instrument, which is particularly useful for promoting national development,” says Congressman Reginaldo Lopes (PT-MG), the bill’s author.
According to the text, “by reducing the relative profitability of non-industrialized goods for their sellers, the proposed legislation seeks to encourage Brazil’s industrialization, increasing the added-value here and, as a result, generating higher profits and domestic salaries, which would otherwise be transferred abroad.”
The project is being processed on a conclusive basis and will be analyzed by the Economic Development, Industry, Commerce and Services commissions; of Finance and Taxation; and Constitution and Justice and Citizenship.
Source: Canal Rural
To read the full original article please visit the link: https://www.canalrural.com.br/noticias/politica/projeto-preve-imposto-sobre-a-exportacao-de-commodities/
- Shipping Dec, 30, 2021 0
- Ports and Terminals Feb, 15, 2019 0
- Ports and Terminals Jul, 08, 2022 0
- Other Cargo Jun, 17, 2022 0