Lula vetoes tax relief for footwear
After the arduous work carried out by unions and industrial entities, the bill related to payroll tax relief was approved by the National Congress. The next step required the approval of the President of Brazil, but Lula da Silva vetoed the initiative.
The decision surprised the Brazilian Footwear Industries Association (ABICALÇADOS) and, according to the association, an additional R$ 720 million in annual tax burden is projected.
In this regard, Haroldo Ferreira, executive president of the association, warned that, during the first year, 20 thousand jobs could be eliminated due to the increase in payroll, according to a study conducted by the association. In addition, the leader stated: "Taxing job creation goes against the desired policy of reindustrialization of the country."
Precisely, the purpose of the project is that the sectors that most employ the workforce can safeguard jobs. The benefit for the footwear industry is the substitution of 20% of the employer's contribution to social security with 1.5% on gross income, as reported by ABICALÇADOS.
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