Panel SA: Agricultural entrepreneurs invade the Legislative Assembly against Caiado’s project that generates more taxes

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Agribusiness entrepreneurs from Goiás are planning new protests at the Legislative Assembly this Wednesday (23). On Tuesday (22), they invaded the plenary in protests against Governor Ronaldo Caiado (União Brasil), who instituted a compulsory contribution fund to bite about R$ 350 million a year.

The project already had 28 votes in favor and, by all indications, it will be approved – which, according to lawyers from large business groups in the state, should trigger a wave of legal challenges before the Federal Supreme Court.

The confusion in the place was so great that the security guards were unable to contain the businessmen, who entered the plenary. In view of the situation, the President of the Assembly canceled the session.

To ensure the safety of deputies who support the governor’s project, remote voting was allowed this Wednesday.

As Panel SA reported, Caiado followed the example of Mato Grosso and Mato Grosso do Sul, which already operate with funds of this nature —also questioned.

According to the rules approved by the Legislative Assembly, the so-called Fundeinfra institutes a compulsory contribution of 1.65% on the amount of ICMS charged in various operations.

In addition to the amount normally charged, the producer will contribute a little more. Instead of the money donated going to the Treasury Department’s coffers, it will be deposited in the fund.

If you do not agree, the entrepreneur will lose the right to benefits or tax exemptions granted by the state.

All those who enjoy benefits will be affected by the measure, regardless of the sector; exporting companies that operate with a special regime and companies that calculate the tax due by tax substitution, among others.

Allies of Caiado claim that the measure aims to cover future tax collection losses with ICMS charged on fuel and essential services, such as energy and telephony.

A supporter of Jair Bolsonaro, Caiado did not join the group of states that appealed to the Federal Supreme Court against the president’s measure, adopted by Congress, which unified the ICMS tax rates on fuel at 17%. The tariff charged in Goiás was higher, hence the potential losses in total tax collection next year.

At that time, the governor of Goiás did not want to signal disapproval of Bolsonaro’s electoral measure by joining other states in the Supreme Court.

“The projects bring with them, under the cloak of an alleged optionality, a trap that basically obliges the rural producer to compulsorily adhere to the model that the Government of Goiás wants to institute, under penalty of losing the tax benefits that relieve the sector and take advantage of special regimes that privilege your cash flow”, says the Agro pela Democracia movement.

In a manifesto, the group states that, in Argentina, the so-called “retenciones” [contribuição similar à de Caiado] helped in the deterioration of the business environment over twenty years.

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix

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