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Governor Mauro Mendes stated that the Tax Reform – in the regulatory phase – is not encouraging the country’s industrialization.

The speech took place during an interview with Jovem Pan News, this Thursday morning (25.04).

According to the governor, this disincentive occurs because the reform provides for the complete exemption from exports of primary products.

“It’s one thing to encourage exports, but not of primary products. We had to encourage the country’s industrialization and export products with more added value. The problem is that this reform had a focus, a very heavy weight on this complete exemption”, he reported.

Mauro Mendes pointed out that the entire agribusiness chain will be exempt from taxes with the reform, which encourages the export of only commodities, without promotion for these products to be industrialized in the country.

“Brazilian agribusiness is geared towards exporting and this is a major activity in Brazil and in all states, since 70% of what we produce goes to exports. So no one will pay absolutely anything in tax, because as it is non-cumulative and the last one in the chain that exports will receive the credit they paid in the entire chain, there will be a reduction in tax payments in this large chain”, he noted.

Another impact on the reform will be the loss of revenue in producing states with low populations, such as Mato Grosso, since the taxation model will occur at the place of consumption, and not at the point of production.

“We are preparing for this. Today the State of Mato Grosso has a large infrastructure program and we are going to attract more investments, attracting people to come and work here. We are already creating a program that we will call here Mato Grosso 33, MT 33, to face this new reality”, he pondered.

Mauro said that he will continue to participate in discussions on reform regulation, to minimize the impacts of the new legislation in Mato Grosso.

“We need to have mechanisms that guarantee us to continue growing, developing, and above all generating quality of life here, without losing competitiveness. Some say to me ‘oh governor but you’re not going to be governor, your term ends in 2026’. But we have to act like Brazilians, think about the country in the present and the future, without constantly patching and amending things”, he concluded.

Source: MT – MT Government