Post by account_disabled on Mar 4, 2024 2:34:02 GMT -8
The ICMS (tax on the circulation of goods and provision of services) is a tax established by the states and the Federal District and has fiscal purposes. As the name suggests, it focuses on operations related to the circulation of goods from various segments such as food, communication services and intercity and interstate transport. One of its main characteristics, in addition to the principle of non-cumulative nature, is its selectivity, which occurs depending on the essentiality of the merchandise or service to be taxed. It is with the variation in tax rates and the calculation base that this selectivity occurs, in inverse proportion to the indispensability of the product to be sold. Thus, the more superfluous the merchandise or service, the higher the rate or calculation base applied to ICMS. In the case of essential goods and services, the tax rate or calculation base may be reduced or even zeroed.
This is what article 155, ยง2, III, of the Constitution [1] guarantees . PlayvolumeAd Among the essential activities and sectors, those that are part of agribusiness stand out, whose economic chain involves food production interconnected by different sectors, such as agriculture, livestock and EL Salvador Mobile Number List industry, in addition to the trade of their products. From this perspective, in order to give effect to the principle of selectivity inherent to the ICMS, the National Council for Financial Policy (Confaz) published the ICMS Agreement 52/1991 and the ICMS Agreement 100/97 , through which it granted: 1) reduction the tax calculation base on interstate exits of agricultural inputs (seeds, insecticides, herbicides, etc.) and 3) operations with industrial equipment and agricultural implements.
However, they were extended due to the importance that their measures represented for the agribusiness sector. Recently, both agreements were extended again [2] , and their deadlines were extended until April 30, 2024 and December 31, 2025, respectively. The recent extensions responded to several requests from the Brazilian Agriculture and Livestock Confederation (CNA), which assessed that the sector would be more competitive: "This agreement is very important for the agricultural sector, as it reduces the tax on inputs. As a result , rural producers who purchase such inputs have less taxation and, therefore, lower costs" [3] . One of the confederation's concerns with the non-renewal of the agreements would be an increase in production costs, which were already accentuated in the last harvest as a result of adverse climatological events that occurred in all Brazilian regions.
This is what article 155, ยง2, III, of the Constitution [1] guarantees . PlayvolumeAd Among the essential activities and sectors, those that are part of agribusiness stand out, whose economic chain involves food production interconnected by different sectors, such as agriculture, livestock and EL Salvador Mobile Number List industry, in addition to the trade of their products. From this perspective, in order to give effect to the principle of selectivity inherent to the ICMS, the National Council for Financial Policy (Confaz) published the ICMS Agreement 52/1991 and the ICMS Agreement 100/97 , through which it granted: 1) reduction the tax calculation base on interstate exits of agricultural inputs (seeds, insecticides, herbicides, etc.) and 3) operations with industrial equipment and agricultural implements.
However, they were extended due to the importance that their measures represented for the agribusiness sector. Recently, both agreements were extended again [2] , and their deadlines were extended until April 30, 2024 and December 31, 2025, respectively. The recent extensions responded to several requests from the Brazilian Agriculture and Livestock Confederation (CNA), which assessed that the sector would be more competitive: "This agreement is very important for the agricultural sector, as it reduces the tax on inputs. As a result , rural producers who purchase such inputs have less taxation and, therefore, lower costs" [3] . One of the confederation's concerns with the non-renewal of the agreements would be an increase in production costs, which were already accentuated in the last harvest as a result of adverse climatological events that occurred in all Brazilian regions.