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STF hears experts about ICMS reduction for pesticides

STF hears experts about ICMS reduction for pesticides

The Federal Supreme Court (STF) held this Tuesday (5) a public hearing to debate the fiscal rules of the National Council for Financial Policy (Confaz) that allow a reduction of up to 60% in the calculation base of the Tax on Circulation of Goods and Services (ICMS) on pesticides.STF hears experts about ICMS reduction for pesticides

The issue was prosecuted by PSOL in an action filed with the Supreme Court. The party contests Confaz Agreement 100/1997 and maintains that Brazil goes against the grain of other countries that overtax defensive products. “It is clear, therefore, that the argument that the use of pesticides is essential, irreplaceable or necessary for agricultural production should not prosper”, says the caption.

Before judging the case, the action’s rapporteur, Minister Edson Fachin, called a public hearing to gather information from experts on the subject.

The use of pesticides and tax incentives were defended by agribusiness representatives. For Raphael Barra, nominated to speak by the Brazilian Association for the Defense of Agribusiness, the use of pesticides is necessary to prevent the proliferation of diseases on plantations. He also mentioned that Brazil is behind the United States, Europe and China in providing financial incentives to rural producers.

“It’s one thing to grow a jaboticaba tree in your backyard. It will bear fruit very easily. It’s another thing to produce a crop of jaboticaba, potatoes, cassava, rice, soybeans and corn,” he said.

Agricultural engineer and representative of the Landless Workers Movement (MST), Ângelo Dellatorre highlighted that the movement is a reference in sustainable food production, such as rice and vegetables. For him, the advancement of technology and tax incentives have increased the use of pesticides in the country.

“I think we should be discussing the transition to organic, regenerative production, food sovereignty, the social function of the land and progressive taxation. However, the fate of companies for profit, regardless of the social, environmental and economic consequences, shows that a portion of society insists on turning the wheel of history towards an uncertain destiny”, he added.

During the hearing, Minister Edson Fachin said that the trial of the case will be scheduled after the finalization of his vote on the issue. The date has not yet been set.


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