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Business entities from agriculture, commerce and industry warn that MP 1202 harms the country's competitiveness and productive sector.
The reinstatement of the payroll, proposed by provisional measure 1202/2023, has generated dissatisfaction among business entities in agriculture, commerce, industry, services and transport. The measure increases the costs of employing in Brazil, negatively impacting the competitiveness of Brazilian products and services both in the domestic market and in international trade.
The increase in charges resulting from the payroll tax increase and the increase in taxation significantly harm business activity, bringing negative consequences for the economy as a whole. It is necessary to seek alternatives to avoid excessive employment costs and maintain the competitiveness of the Brazilian market.
Payroll repayment: Business entities express dissatisfaction with MP 1202/2023
In a joint statement, the Brazilian Confederation of Agriculture and Livestock (CNA), National Confederation of Commerce of Goods, Services and Tourism (CNC), National Confederation of Industry (CNI) and the National Transport Confederation (CNT) express dissatisfaction with MP 1202. The re-encumbrance of the payroll of 17 sectors of the economy, limits the use of tax credits resulting from definitive court decisions for the payment of federal taxes and reviews the Emergency Program for the Resumption of the Events Sector (Perse).
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Impact of payroll repayment on companies
The president of the CNI, Ricardo Alban, highlights that the increase in charges resulting from the re-encumbrance of the payroll will result in the prudence of those who hire. With a 20% increase in charges, economic sectors tend to stop investing and adjust their operations to deal with the new costs, which will negatively impact the competitiveness.
Competitiveness, industry and commerce: Challenges in the face of payroll tax increases
According to the Confederations, MP 1202 further harms the competitiveness of industry and commerce, which face competition unequal with the imports, especially international e-commerce. The increase in the tax burden of productive setor is considered a mistake that will affect the ability to generate riches and jobs that drive economic and social development.
Business entities express surprise and disagreement with the measures to increase taxation
The business entities of the farming, commerce, industry, services and transport were surprised and expressed non-compliance with the measures to increase taxation announced in MP 1202 in 2023. The measures were implemented without dialogue prior and in opposition to previous decisions of the Congress.
Economic consequences of payroll reinstatement
Payroll increases increase the cost of employment in Brazil and harm the competitiveness of industry and commerce, which already face challenges of unequal competition with imports. The situation requires legal challenges to reverse these measures and promote federal collection and tax justice between national production and imports.
Productive sector seeks balanced fiscal adjustment and dialogue for public policies
Although it understands the importance of fiscal adjustment, the productive sector highlights the need for a balance in the distribution of expenses between the public and private sectors. Dialogue and the search for convergence are fundamental for public policies to achieve their objectives and boost economic growth and fiscal balance.
Source: Industry Portal
