The governor of Brazil’s Para State plans to repeal an impending state tax on grain production following input from farmers. The tax, which would have imposed fees on soybeans and corn, was criticized by farming groups. Concurrently, a separate 1.8% export levy introduced in neighboring Maranhao faces legal challenges from industry bodies.
In a recent announcement, Para State Governor Helder Barbalho declared he will propose legislation to abolish a state tax on grain production. This tax, which was impending implementation next month, would have charged 4.32 reais ($0.75) per 60-kilo bag of soybeans and 2.09 reais ($0.36) per 60-kilo bag of corn. The decision follows feedback from local farmers, who voiced concerns about the economic impact of the tax.
Aprosoja Para, a soy farmers’ lobbying group, hailed the governor’s decision as a significant victory, emphasizing its crucial role in enhancing the sector’s competitiveness and growth. The taxation issue arises amidst broader criticism regarding a separate state law that has introduced a 1.8% export levy on grains from the neighboring Maranhao state.
While Maranhao officials justify the levy as necessary for funding logistics investments that would benefit the agribusiness sector, opposition has been voiced by the Abiove organization, which represents international grain traders. Abiove has responded by initiating legal action against the export tax, intensifying the ongoing debate about the financial pressures on the grain industry.
Governor Helder Barbalho’s initiative to revoke the tax on grain production in Para State reflects a responsive approach to farmer feedback and aims to support the agricultural sector’s competitiveness. The broader controversies surrounding tax measures in the region underline ongoing tensions between state policies and agribusiness interests, necessitating careful consideration of tax impacts on local economies.
Original Source: money.usnews.com
