Poultry Industries to Benefit from Tax Relief

BRAZIL - The Federal Government announced that the pig and poultry sectors will benefit from the payroll tax relief.
calendar icon 17 September 2012
clock icon 2 minute read

In total, over 25 sectors of the economy will be affected, which would imply a renunciation of $12.8 billion in 2013.

In four years (2013-2016), the exemption Leaf will cost $60 billion.

The decision is to replace 20 per cent employer contribution to Social Security by a rate of one per cent of revenue. Moreover, exporting firms that export poultry and swine will not pay anything on its production revenues.

The Minister of Agriculture, Livestock and Supply, Mendes Ribeiro Filho, highlighted the commitment of the entire government in the resumption of growth in the economy and in supporting strategic sectors such as agribusiness.

"The measures announced will contribute to the reduction of production costs and internal inputs."

He adds that the actions relieving the payroll of wages and changing the base for sales are positive for maintaining and expanding employability, besides stimulating the competitiveness of Brazilian products.

In Brazil, the pork industry has 190,000 employees and uses mostly hand labour while in competitor countries most of the industry is already automated.

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