Agri Business

Rural producers protest at the Assembly of Goiás –

A group of farmers protested in the legislative Assembly de Goiás (Alego), in Goiânia, on Tuesday the 22nd. One party even invaded the plenary session against the approval of the project that creates a contribution on agricultural products.

The invasion took place after the parliamentarians rejected the request presented by state deputy Eduardo Prado (PL), who asked for the withdrawal of the project from the agenda of the day.

Alego explained that the farmers followed the activities in the galleries and corridors before entering the plenary. After the demonstration, the session was closed without analyzing the proposal. According to the body, a new hybrid plenary session without an audience is scheduled for today at 3 pm.

In a note, the state government classified the protest as “vandalism” and said it repudiated the act. “Scenes like these tarnish the image of the State nationwide. Violence cannot overcome institutionality, under any circumstances”, he disclosed.

Agro Fee

The project elaborated by the government of Goiás became known as “taxa do Agro” and foresees a percentage of 1.65% on agricultural products produced in the State. The details about the fee will still be defined by the government after the discussion of the project.

On Thursday 17th, Alego deputies approved two proposals in the first vote to 1) create the agro contribution and 2) establish the State Infrastructure Fund, which will manage the amount collected with the fee. For it to come into force, the projects need to be approved in a second vote, and be sanctioned by the government.

According to the justification presented by the State, the contribution is restricted to producers who have tax benefits or special tax regimes. The Agro fee, which already exists in Mato Grosso and Mato Grosso do Sul, will not be applied to producers of basic basket items, milk and family farmers who sell directly to the final consumer.

The government’s expectation is to collect R$ 1 billion per year. The value would offset the loss of the Tax on the Circulation of Goods and Services (ICMS) on fuels and energy determined by the federal government.

The resource goes to the state treasury and will be used exclusively for infrastructure maintenance, such as highways, bridges and airfields.

Deputies linked to the agribusiness sector said that the project is unconstitutional and there is no way of knowing details of the impact of the new tax. “The creation of a tax on agricultural production sacrifices the rural producer of Goiás and also increases the price of food in the supermarket”, said the deputy Paulo Job (PL).

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