Pressure to extend the corn exemption

Agribusiness sectors are moving to renew the PIS/Cofins exemption on corn, and to zero the import tariff on the product. Poultry and swine farmers report that the tax cuts helped put a brake on the price of cereal on the domestic market and they want the measures to be extended until June 2022.

Benefits expire at the end of this year. The ruralist panel in congress has already been activated and messages are also being transmitted to the Ministry of Economy.

In the case of PIS/Cofins, the extension depends on a new provisional measure or the approval of the text that is in Congress, with a new expiration date. It also demands an indication of the tax waiver and the source of compensation, which this year is the increase in the Financial Operations Tax (IOF) on credit – the validity of which also ends at the end of the month. The monthly cost of the exemption is R$ 26.6 million.

In September, when it published the provisional measure, the government estimated a waiver of R$79.77 million in tax revenues with the exemption of federal taxes on corn imports in October, November, and December. The measure took effect in the first month of validity. In October, corn purchases from Argentina and Paraguay, which had already reached 407,000 tons in the previous month, reached 503,000 tons deals worth US$ 120 million,163% more than in the same month in 2020.

In the first ten months of 2021, Brazil imported 2.1 million tons of cereal from its South American neighbors, 133% more than in the similar period of the previous year. The expectation is to reach 2.3 million tons by the end of the year.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/12/08/pressao-pela-prorrogacao-da-desoneracao-do-milho.ghtml

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