Brazil: Sheep farming will pay less tax in Santa Catarina

Tax equalization in relation to other States for the sheep and goat production chain – an old demand of the Federation of Agriculture and Livestock of the State of Santa Catarina (FAESC) – was achieved this year thanks to a decree signed by Governor Jorginho Mello. “We lost competitiveness because the tax burden in Santa Catarina was higher than in other state units. From now on we will compete on equal terms”, celebrates the president of FAESC, José Zeferino Pedrozo. According to the decree, ICMS taxation will be reduced. The ICMS charged in Santa Catarina was 12% without credit. On the other hand, the buyer of sheep from Rio Grande do Sul (which supplies 90% of the sheep slaughtered in SC) pays 12% ICMS and is credited with 5%, resulting in a net tax payable of 7%. There was an imbalance here, because transactions were 5% more expensive for people from Santa Catarina. The decree issued on July 25 by the Santa Catarina government repairs this injustice and seeks to encourage the ...