Increasing Payroll Taxes Threaten Jobs in Brazil, Says Productive Sector

Written by Paulo Nogueira

Published on 04/01/2024 at 15:20

Em nota, CNA, CNC, CNI e CNT expressam a insatisfação com a MP 1202 – Todos os direitos: Portal da Indústria

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Industry Entities Warn That MP 1202 Will Harm Tax Justice, Impacting Competitiveness and Economic Growth.

The government’s proposal to implement MP 1202/2023 has raised concerns among business entities, which see the increase in costs as a threat to employment in Brazil. The competitiveness of Brazilian products and services, both in the international scenario and in the domestic market, is affected by this measure, according to the assessment of entities from agriculture, commerce, industry, services, and transportation. These entities represent the majority of formal and private employment in the country, and they are united in seeking solutions that do not compromise the generation of jobs in Brazil.

The discussion around MP 1202/2023 also raises questions about the state of work in the country. Business entities are united in seeking solutions that do not compromise the generation of jobs in Brazil, aiming to preserve the competitiveness of Brazilian products and services. It is essential to find alternatives that do not harm the employment of the workforce and the hiring of new professionals in the labor market.

Business Confederations Speak Out Against MP 1202

In a 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 National Confederation of Transport (CNT) express dissatisfaction with MP 1202. The measure increases payroll taxes for 17 sectors of the economy, restricts the use of tax credits from final court decisions for the payment of federal taxes, and modifies the Emergency Program for the Resumption of the Events Sector (Perse).

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Ricardo Alban, president of CNI, emphasizes that in the past, there has always been an emphasis on the importance of preserving jobs. ‘It is evident that the increase in payroll taxes will result in greater caution on the part of employers. When a sector of the economy faces a 20% increase in its charges, what will be the reaction? The first step is to stop investing and then reduce operations to understand the impact of this new and unexpected cost on their performance, thereby losing competitiveness’, says the businessman.

According to the Confederations, MP 1202 further harms the competitiveness of the industry and commerce, which face unequal competition from imports, particularly in international e-commerce, which does not bear the same taxes paid by the national productive sector. The MP is considered misguided for 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 Hiring in Brazil and Harms Competitiveness

The productive sector, represented by business entities from agriculture, commerce, industry, and transportation, views with surprise and discontent the measures of increased taxation announced at the end of 2023 and how they were implemented through MP 1202, without prior consultation with the entities and in disagreement with positions recently taken by the National Congress.

Source: Industry Portal

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Increasing Payroll Taxes Threaten Jobs in Brazil, Says Productive Sector

Industry Entities Warn That MP 1202 Will Harm Tax Justice, Impacting Competitiveness and Economic Growth.

Business Confederations Speak Out Against MP 1202

Complete Note Against MP 1202/2023

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Increasing Payroll Taxes Threaten Jobs in Brazil, Says Productive Sector

Industry Entities Warn That MP 1202 Will Harm Tax Justice, Impacting Competitiveness and Economic Growth.

Business Confederations Speak Out Against MP 1202

Complete Note Against MP 1202/2023

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