The FPA debates the impact of the Tax Reform on the agricultural sector

The bench president, Pedro Lupion (PP-PR) highlighted that the sector wants to support reforms, but without being at a disadvantage

The Parliamentary Front for Agriculture (FPA) received, this Tuesday (28), the rapporteur of the Working Group on Tax Reform, deputy Aguinaldo Ribeiro (PP-PB). In a meeting held at the headquarters of the Brazilian Confederation of Agriculture and Animal Husbandry (CNA), faction members debated the Proposed Amendment to the Constitution which is being discussed at the National Congress. FPA President, deputy Pedro Lupion (PP-PR), highlighted the importance of maintaining a balance to simplify the taxation system without harming the agricultural sector in the country.

“We want to support Tax Reform and to support it we must not be disadvantaged. With that, we depart from the needs of the people to understand what the Brazilian production system means,” explained Pedro Lupion. The MP pointed out that the UN has presented data with eight billion people to feed in the world and that “Brazil is the only country that can double production to ensure food security.”

The Deputy also emphasized that, “the statement that agro is under tax is wrong and a war of narratives. We are taxed throughout the production chain. Whether it’s buying seeds, defending, inputting, equipment, fuel, labor laws,” he said.

Lupion mentioned that the sector represents a third of the national GDP, 25% of employment and most of the country’s exports. “Agro needs to be heard, respected, and most importantly, it needs an opportunity to raise concerns regarding the next tax reform,” he added.

Deputy Aguinaldo Ribeiro (PP-PB), rapporteur on the tax reform working group in the Chamber, said that the preparation of the proposal was a compilation of what was debated at the Joint Tax Reform Commission, in public hearings held before the pandemic, still in early 2020.

“We need a text that represents most of the DPR’s thoughts. We will not have unanimity”, said Aguinaldo, also stating that “he is attentive and open to soliciting concerns from agro”, he said. In the view of the rapporteur, the agricultural sector will be able to collaborate with a simpler, more transparent and fair system, which will enable job and income creation.

The meeting was also attended by WG tax reform coordinator, deputy Reginaldo Lopes (PT-MG), FPA MP, CNA president, João Martins, and deputy Baleia Rossi (MDB-SP), author of Proposed Constitutional Amendment (PEC) 45, which created single tax on goods and services.

The working group formed by the mayor Arthur Lira (PP-AL) to discuss tax reform has 12 members. Deputies who are part of the team will be able to hold public hearings and meetings with civil society bodies and entities within 90 days. At the end of this phase, the report of Deputy Aguinaldo Ribeiro (PP-PB) will be presented for analysis by the National Congress.

Clara Burton

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