COMMITTEE APPROVES TAX BENEFIT TO ENCOURAGE FERTILIZER PRODUCTION IN BRAZIL

The Committee on Agriculture, Livestock, Supply and Rural Development of the Brazilian Lower House approved Bill 3507/21, which creates a program to promote national fertilizer production. According to the resolution, the Fertilizer Industry Development Program (Profert) will benefit companies that have approved projects for the implementation, expansion or modernization of fertilizers units. Machines, equipment, civil construction materials, and services contracted for the projects will have payment suspension of the contribution for PIS/Pasep, PIS/Pasep-Import, Cofins, Cofins-Import, Tax on Industrialized Products (IPI), IPI linked to imports and Import Tax (II). The tax suspension means zero rates after the use of the good or construction material. Profert also provides for the non-levy of the Additional Freight for the Renewal of the Merchant Marine (AFRMM) and the application of a zero rate of the Income Tax at Source and the Contribution for Intervention of Economic Domain (Cide) levied on amounts remitted abroad, including royalties.

Sources: Canal Rural/Global Fert (*Translated by Ia Niani)