Tax reform: government proposes partial tax on picanha and other proteins of animal origin | Economy

The proposal from the federal government and the states for the national basic food basket, in the regulation of the tax reform, included proteins (beef, pork, lamb, goat and poultry and products of animal origin) in partial taxation.

In the national basic basket in force today, these products are exempt from federal taxes.

This is because, according to Appy, proteins are currently taxed by the state ICMS — even though they are exempt from federal taxes (because they are in the national basic basket).

• The government therefore says that the weight of taxes on meat, in general, is currently 12.7% (considering the state ICMS and also tax residues, that is, taxes on taxes).
• With the partial taxation instituted by the tax reform, which will start charging non-cumulative taxes, the economic area says that the weight of taxes will fall to 10.6%.

According to Secretary Bernard Appy, from the Ministry of Finance, the low-income population, around 73 million people, will be entitled to a 20% reduction in the so-called “cashback” — refund of the tax paid. For this audience, the rate would be even lower, at 8.5%.

Understand tax reform regulations

One of the guidelines, explained the government, was the prioritization of foods mostly consumed by the poorest, with the purpose of ensuring that the maximum possible tax benefit is appropriated by low-income families.

“To support the selection of these foods, an indicator was constructed that measures the relationship between how much each food weighs in the food budget of low-income families and how much it weighs in the food budget of other families, based on information from the Food Survey. IBGE Family Budgets”, informs the document.

Furthermore, he informed that another principle that supported the proposal was that the selection of foods, with reduced taxation, does not include those whose consumption is concentrated “among the richest”.