The president of Brazil, Jair Bolsonaro, approved a bill that extends payroll tax exemptions for 17 sectors of the economy, in an attempt to boost job creation, according to a decision published in the official gazette late on Friday.
The exemption was extended for another two years, until the end of 2023, and benefits meatpacking companies, the Civil construction and the textile industry, among other sectors.
“According to this measure, companies can choose not to pay the contribution to the Social Security calculated on payroll and continue to quote based on your gross income. Thus, companies have a greater incentive to hire staff, “according to a note from the president’s team.
The government needs to find sources of tax revenue to make up for the deficit.
Alternatives include extending the financial transaction tax surcharge until 2023 and maintaining the so-called CSLL rate, charged by banks at a high level.
Reference-www.eleconomista.com.mx