Duque celebrates the implementation of a tax incentive package for milk production in the state

Duque celebrates the implementation of a tax incentive package for milk production in the state – Blog da Folha

The state representative Luciano Duque used his speaking time in the plenary session of the Legislative Assembly, this Monday (1st), to congratulate the State government by the decree that grants tax benefits on operations with milk and its derivatives for the local industry. O decree 56,323 was published in the Official State Gazette last Thursday (28).
According to Duque, the initiative represents an important incentive for dairy farmers to produce and sell milk from their properties, generating employment, income and ensuring a quality product on the tables of Pernambuco residents.

“Dairy production is the main driver of the economy in 30 municipalities in Pernambuco. A strategic and development-inducing sector for Pernambuco”.

The parliamentarian recalled that, since last year, the struggle of Pernambuco producers has been taking over, who face strong and unfair competition with tax incentive programs adopted by neighboring states. “Even though we are the largest milk producer in the Northeast, we were bitter, or rather soured, with a strong crisis that affected all producing municipalities”.

One of the initiatives established by the decree will follow the example of the benefit offered by the state of Ceará, which grants a presumed credit of 95% on the outstanding balance resulting from the departure of goods processed with milk. This measure will be replicated in Pernambuco, as long as 90% of the input purchased comes from the Pernambuco producer, made in the local industry. This benefit is conditional on manufacturers purchasing milk from rural producers in Pernambuco.

Another determination grants exemption from the Tax on the Circulation of Goods and Provision of Services (ICMS) on internal shipments of products derived from milk, such as cheese, cottage cheese and dulce de leche, carried out by rural producers, resulting from artisanal manufacturing.

Among some measures that are still being discussed are: the exemption for interstate operations of fresh milk and the exemption for rural producer butter. For fresh milk, the proposal intends to authorize the state of Pernambuco to grant exemption in interstate operations to Sergipe and Alagoas with natural milk.

Despite recognizing the sector’s incentive program, the parliamentarian demanded the return of the Milk for All Program, aimed at people at risk of food insecurity – which directly benefits the production chain, and the adoption of policies that make milk available in school meals ( the so-called soft belly milk, sold in sachets). “As an example of what our neighbor Paraíba is already doing, which finances R$ 0.60 per liter to producers when purchasing their lunches”.