Farmers in Pará Face New Export Tax Challenges for the 2024/25 Season

Rural producers in the Northern state of Pará are grappling with a new challenge for the 2024/25 harvest: an agricultural export tax introduced by Governor Helder Barbalho. Starting in March, a levy of R$ 4.32 per bag of soybeans (R$ 72.00 per tonne), just over R$ 2.00 per bag of corn, and R$ 10.00 per arroba of beef cattle will be imposed. The measure has sparked strong backlash among producers and prompted sector-wide mobilization to overturn it.

Agricultural Sector Takes Action

According to Vanderlei Ataídes, president of Aprosoja-PA, two meetings with the state government are scheduled for January 25 and 30. “We’re facing tough times and cannot bear additional taxes. This measure is halting trade; many buyers are already factoring the new tax into the prices they offer,” he said.

Ataídes criticized the decree’s approval “at the last minute, during the New Year transition,” without dialogue with key stakeholders. He warned that the measure could slash producers’ profit margins by up to 30%, particularly as over 90% of Pará’s soybean production is destined for export. He also noted that Pará’s agricultural sector is still in its consolidation phase, unlike states such as Mato Grosso and Goiás, which have more mature markets.

Impacts Felt in Maranhão and Other State

Maranhão is facing a similar situation following the approval of a 1.8% tax on the gross value of agricultural export invoices, announced by Governor Carlos Brandão. Aprosoja-MA has already decided to take legal action to block the measure, which was passed at the end of last year.

According to Aprosoja Brasil president Maurício Buffon, similar tax initiatives are being implemented in Piauí and Tocantins, with ongoing lawsuits challenging the measures.

Industry Reaction

The agricultural sector’s response has been unanimous outrage. Producers argue that these new taxes undermine Brazil’s competitiveness in international markets, particularly in regions like Pará and Maranhão, which are still expanding their agricultural capacity.

The agriculture and finance departments of Pará and Maranhão were contacted for comment but did not respond before this article’s publication.

Broader Context

The taxation of exports in Pará and other states has reignited debates over the tax burden on agribusiness and its implications for Brazil’s position as a global export powerhouse. While producers are rallying to reverse the measures, the sector faces uncertainties that could jeopardize the performance of the 2024/25 harvest.

Source: Noticias Agrícolas 

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