Optimism in the Brazilian sector. Wage tax exemption advances
Great expectations have generated the approval of the continuity of the tax exemption on salaries, after having been approved by the Constitution, Justice and Citizenship Commission in the National Congress. For the Brazilian Association of Footwear Industries -ABICALÇADOS-, it is an advance that brings greater legal certainty for Brazilian shoemakers who are planning the year 2022.
The president of ABICALÇADOS, Haroldo Ferreira, stressed that the measure is essential for the Brazilian footwear sector to continue on the path of recovery. "Until October, we had an increase in all indicators, with a growth of more than 18% in the production of shoes in relation to the same period last year", he pointed out. According to the executive, the end of the payroll tax exemption would generate a tax overrun of more than R $ 600 million (approx. US $ 110 million) for the sector in 2022, which would cause the loss of more than 14 thousand jobs. From the vote in the CJCC, the Bill (PL 2541/2021), which provides for the renewal of the measure, goes to a vote in the Federal Senate, where it must be approved. After its approval, it must be sanctioned by President Jair Bolsonaro, who last week indicated that he will sanction the measure without vetoes.
Ferreira commented that the tax exemption will allow the continuity of the recovery of the activity, which between January and September 2021 generated more than 33 thousand jobs, totaling 280 thousand direct jobs throughout the country, 15.6% more than last year.
Created in late 2012, the payroll tax exemption is intended to help labor-intensive economic sectors in generating employment. Currently, the measure benefits 17 activities, in which companies can substitute the payment of 20% in payroll for 1% to 4.5% of gross income, excluding exports. In the case of the footwear sector, the rate is 1.5%.
Source: ABICALÇADOS
RELATED ARTICLES: