April 20, 2009
Tax exemption to stimulate Brazil meat industry
The Brazilian government has recently approved an export product tax exemption bill, officially known as Integrated Drawback, effective from mid May onwards.
It will provide exporters with a total tax rebate of 14.25 percent which comprises of taxes on industrialised products and social taxes on inputs purchased for export product manufacturing or processing, including meat.
Initially, this initiative was oriented only for manufacturing industries, but the agricultural industry was included as a result of the low cash availability and general financial problems that have affected agricultural companies, in particularly meat processors.
This initiative is oriented to stimulate local input consumption and increase the competitiveness of Brazilian product in export markets, especially chicken and pork, of which production is more intensive in inputs such as corn.
