Shoemakers celebrate tax exemption on wages

Finally, after a long time of struggle and claim, on December 31st, 2021, the government published the sanction of the extension on the tax exemption of wages until the end of 2023. In this way, the Brazilian footwear industries will continue to contribute 1.5% of gross domestic salaries, instead of 20% on the payroll of their employees.

For the executive president of ABICALÇADOS -Brazilian Association of Footwear Industries-, Haroldo Ferreira, the measure is fundamental so that the sector can maintain and expand the more than 37 thousand jobs created in 2021. “It is the best news of the year! With the exemption we will be able to continue recovering jobs, which in 2021 were 13% higher than in 2020, thanks to the validity of that measure”, he said.

Currently, more than five thousand footwear industries in Brazil generate more than 282 thousand direct jobs, in at least 10 Brazilian states. According to the ABICALÇADOS survey, if the exemption had not been extended, as of 2022 the sector would have had an increase of more than R $ 600 million -approx. more than US $ 100 million- in its tax burden. Which would have caused the loss of more than 25 thousand jobs in the course of two years.

Source: Imprensa ABICALÇADOS

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