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Business Entities of Agriculture, Trade and Industry Warn That MP 1202 Harms Competitiveness of the Country and Productive Sector.
The re-establishment of payroll taxes, proposed by Provisional Measure 1202/2023, has generated dissatisfaction among business entities in agriculture, trade, industry, services, and transportation. The measure increases the cost of employment 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 re-establishment of payroll taxes and the increase in taxation significantly harms business activity, bringing negative consequences for the economy as a whole. It is necessary to seek alternatives to avoid overloading employment costs and maintain the competitiveness of the Brazilian market.
Re-Establishment of Payroll Taxes: Business Entities Express Dissatisfaction With MP 1202/2023
In a joint statement, the Confederation of Agriculture and Livestock of Brazil (CNA), National Confederation of Commerce of Goods, Services and Tourism (CNC), National Confederation of Industry (CNI), and National Confederation of Transportation (CNT) express dissatisfaction with MP 1202. The re-establishment of payroll taxes for 17 sectors of the economy limits the use of tax credits arising from final court decisions for the payment of federal taxes and revises the Emergency Program for the Resumption of the Events Sector (Perse).
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Impact of Re-Establishment of Payroll Taxes on Companies
The president of the CNI, Ricardo Alban, highlights that the increase in charges resulting from the re-establishment of payroll taxes will lead to caution from employers. With a 20% increase in charges, economic sectors tend to stop investing and adjust their operations to deal with new costs, which will negatively impact competitiveness.
Competitiveness, Industry and Commerce: Challenges Facing the Re-Establishment of Payroll Taxes
According to the Confederations, MP 1202 further harms the competitiveness of industry and commerce, which face unfair competition with imports, especially from international e-commerce. The increase in the tax burden on the productive sector is considered a mistake that will affect the ability to generate wealth and jobs that drive economic and social development.
Business Entities Express Surprise and Indignation With Tax Increase Measures
Business entities in agriculture, trade, industry, services, and transportation were surprised and express indignation with the tax increase measures announced in MP 1202 in 2023. The measures were implemented without prior dialogue and in opposition to previous decisions of the National Congress.
Economic Consequences of the Re-Establishment of Payroll Taxes
The re-establishment of payroll taxes increases the cost of employment in Brazil and harms the competitiveness of industry and commerce, which already face challenges from unfair competition with imports. The situation demands legal actions to reverse these measures and promote federal revenue and tax justice between domestic production and imports.
Productive Sector Seeks Balanced Fiscal Adjustment and Dialogue for Public Policies
While understanding the importance of fiscal adjustment, the productive sector emphasizes the need for a balance in the distribution of expenses between the public and private sectors. Dialogue and the search for convergence are essential for public policies to achieve their goals and drive economic growth and fiscal balance.
Source: Portal da Indústria
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