Entities in the productive sector warn that MP 1202 will harm tax justice, impacting competitiveness and economic growth.
The government's proposal to implement MP 1202/2023 has generated concerns among business entities, who see the increase in costs as a threat to employment in Brazil. The competitiveness of Brazilian products and services, both on the international scene and on the domestic market, is affected by this measure, according to the assessment of entities in agriculture, commerce, industry, services and transport. These entities represent the majority of formal and private employment in the country, and are united in search of solutions that do not compromise the generation of employment in Brazil.
The discussion around MP 1202/2023 also raises questions about the situation of day in the country. Business entities are united in search of solutions that do not compromise the generation of employment in Brazil, aiming to preserve the competitiveness of Brazilian products and services. It is essential to find alternatives that do not harm the occupation workforce and the admission of new professionals into the labor market day.
Business Confederations Demonstrate Against MP 1202
In a statement, the Brazilian Confederation of Agriculture and Livestock (CNA), National Confederation of Commerce in Goods, Services and Tourism (CNC), National Confederation of Industry (CNI) and the National Transport Confederation (CNT) demonstrate dissatisfaction with MP 1202. The measure reinstates the payroll of 17 sectors of the economy, restricts the use of tax credits arising from final court decisions for the payment of federal taxes and modifies the Emergency Program for the Resumption of the Events Sector (Perse).
Ricardo Alban, president of the CNI, highlights that in the past there has always been an emphasis on the importance of preserving employment. ‘It is clear that the re-encumbrance of the payroll will result in increased caution on the part of employers. When a sector of the economy is faced with a 20% increase in its charges, what will be the reaction? The first step is to stop investing and then reduce your operations to understand the impact of this new and unexpected cost on your performance, thus losing competitiveness’, says the businessman.
According to the Confederations, MP 1202 further harms the competitiveness of industry and commerce, which face unequal competition with imports, particularly in international electronic commerce, which does not bear the same taxes paid by productive setor national. The MP is considered mistaken in increasing the tax burden on the productive sector, the main generator of wealth and jobs that contribute to sustainable economic and social development.
Complete Note Against MP 1202/2023
MP 1202 Increases the Cost of Admission in Brazil and Harms Competitiveness
The productive sector, represented by business entities in agriculture, commerce, industry and transport, sees with surprise and dissatisfaction the measures to increase taxation announced at the end of 2023 and the way in which they were implemented through MP 1202, without the due prior consultation with entities and in disagreement with positions recently taken by the National Congress.
Source: Industry Portal
