Brazil: Paraná reduces ICMS for yerba mate to increase competitiveness

Published 2024년 12월 23일

Tridge summary

The Government of Paraná, led by Governor Carlos Massa Ratinho Junior, has taken a significant step to boost the competitiveness of the state's yerba mate industry by issuing Decree No. 8,402. This decree provides a presumed ICMS credit for interstate sales of processed yerba mate, aiming to lessen the tax burden on this crucial economic product. The credit varies between 5% and 2.9% depending on the interstate tax rate, capping at a certain amount determined. The decree also ensures that the credit cannot be cumulative with other tax benefits and is only applicable up to the ICMS debts of the period. This initiative is expected to strengthen Paraná's position as the leading yerba mate producer in Brazil, with an production volume of 425.8 thousand tons in 2023, by making the product more competitive domestically.

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Original content

The Government of Paraná announced a measure that aims to strengthen the competitiveness of Paraná's yerba mate in the national market. On Wednesday (18), Governor Carlos Massa Ratinho Junior signed Decree No. 8,402, which grants a presumed credit for the Tax on Circulation of Goods and Services (ICMS) for interstate sales of processed yerba mate. The measure reduces the tax burden on one of the main products of the state's economy, making it more competitive in the domestic market. The presumed credit will be granted for yerba mate already processed by the establishment itself, as long as it is packaged in a package of up to 1 kg. The credit will be 5% on sales to states with an interstate tax rate of 12% and 2.9% for those with a tax rate of 7%. With this action, Paraná, the largest national producer of yerba mate, seeks to reduce the tax burden for local producers, increasing the competitiveness of the sector. In 2023, the state extracted 425.8 thousand tons of yerba mate. The ...

Source: Portal Do Agronegocio