Poder360 Seminar with support from Uncab will address the effects of the new taxation on Brazilians on Wednesday (3.Jul)
O Power360 carries out, with the support of Uncab (Union of the Food and Non-Alcoholic Beverage Production Chain), the seminar “Impact of tax reform on Brazilians’ tables”, in Brasília (DF). The event will be held on Wednesday (3.Jul.2024), to address the effects of changes in the taxation of food and beverages. The live broadcast will be via channel of the digital newspaper on YouTube, from 9am. sign up in this link.
Members of one of the working groups that debate the regulation of reform in Chamberfederal deputies Reginaldo Lopes (PT-MG) and Augusto Coutinho (Republicans-PE) are among the participants in the event. In the Lower House, 7 Congressmen analyze the PLP (complementary bill). Here’s the complete (PDF – 2 Mb).
The PLP lists 18 foods that should be exempt from IBS (Goods and Services Tax) and CBS (Contribution on Goods and Services) in the new national basic food basket. Other items were included in the 60% reduced rate charge, in a 2nd list.
Products with a tax rate reduced by 60% are divided into 14 subgroups, including animal proteins, cheeses, flour, yogurt, vegetable oils, pasta, juices without added sugar, among others.
For these foods, the tax percentage will depend on the value established for IBS and CBS, which make up VAT (Value Added Tax). If the federal government’s average estimate of a rate of 26.5% for this tax is considered, the 2nd food group should have a tax rate of 10.6%. There is no official definition of this yet.
There are also products that were not included in either list and that can receive the full rate of 26.5%. Furthermore, sugary drinks, such as soft drinks and soft drinks, are included in the list of extra taxation, the Selective Tax, the rate of which has not yet been fixed.
For industry, the ratio of foods included in the 2 groups is reduced. With the uncertainty regarding tax rates and the restricted number of products in the basic basket, the price of food may become higher, points out the sector.
Currently, according to Abia (Brazilian Food Industry Association), the tax on industrialized food products in Brazil is, on average, 24.4%, while in the countries that make up the OECD (Organization for Economic Cooperation and Development), is 7%.
The sector considers any product that goes through conditioning on the production line to be industrialized, including fresh processed meat and milk, for example. In total, around 5,700 foods undergo some type of industrialization in Brazil, 60% of which are agricultural production.
The deadline for concluding debates in the working groups that discuss the regulation of tax reform in the Chamber, including food taxation, is 60 days from May 21st.
Debate
The seminar “Impact of tax reform on Brazilians’ tables” will have 2 panels, whose central themes will address, among other points, the new taxation for the food sector, the impact on Brazilian consumption, the criteria for choosing products from the new basic basket and the reduced tax rate.
The expansion of items with lower taxes will also be debated in view of the nutrition challenges in the country.
The mediation will be carried out by journalist Guilherme Waltenberg, senior editor of Power360. Participate:
- Reginaldo Lopes (PT-MG), Congressman;
- Augusto Coutinho (Republicanos-PE), Congressman;
- João Dornellas, Executive president from the Abia (Brazilian Food Industry Association);
- Roberto Giannetti da Fonseca, economistformer executive secretary of Camex (Chamber of Foreign Commerce) and former director of Fiesp (Federation of Industries of the State of São Paulo);
- Márcia Terra, nutritionist and member of Academy of Nutrition and Dieteticsof the Advisory Council of Anad (National Diabetes Care Association) and the Sban (Brazilian Society of Nutrition and Food);
- Victor Bicca, CEO from the open (Brazilian Association of Soft Drinks and Non-Alcoholic Beverage Industries); It is
- Márcio Holland, teacher from the FGV/EESP (São Paulo School of Economics of the Getulio Vargas Foundation).
Spaces for in-person participation are limited. Besides the streaming live, the digital newspaper team Power360 will provide complete coverage of the event. The recording of the seminar will also be available after the debates have concluded.
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