How can efficient management make Brazilian agroindustry more competitive?

Brazil’s agroindustry, crucial to the country’s exports, faces major challenges in fiscal management, resulting in excessive payments of taxes and duties. According to conservative estimates, annual waste could exceed R$1 billion. This value could be saved and reinvested in productive and technological innovation, if more efficient tax strategies were adopted.

One of the main difficulties faced by the sector is the underuse of special tax and customs regimes that allow the suspension or exemption of taxes along the entire production chain. Less than 10% of agri-food companies benefit from these legal options, which end up directly impacting the price of products and damaging competitiveness in the international market. The cost of inputs, such as fertilizers and pesticides, is often passed on to the end consumer, increasing the cost of production.

The challenges of Brazilian agroindustry

The lack of knowledge of tax alternatives, combined with the fear of adopting strategies that require greater control and monitoring, further worsens this scenario. The complexity of Brazilian tax legislation requires a specialized approach to ensure that you can take advantage of the tax benefits, without running the risk of penalties.

An example of a special regime is the Inconvenience and the Recof-Sped, which allow the suspension of taxes such as PIS, Cofins and IPI during production. For the correct application of these regimes it is essential to understand the functioning of the company and its position in the production chain. In this way it is possible to apply tax exemptions effectively, reducing production costs and making the sector more competitive.

Another important point is customs control. Many businesses pay additional taxes, such as the AFRMM, on the transportation of imported goods, without realizing that they can get a break on that tax. This reduction in agricultural input costs can have a positive impact on the final price of the product.

Furthermore, efficient tax management requires not only compliance with legislation, but also the use of advanced technologies to keep up with the constant changes in tax rules. Tools like machine learning and data extraction offer detailed analysis of companies’ tax operations, identifying opportunities to reduce costs and mitigate tax risks.

With these technologies you can ensure that your company complies with tax regulations and avoid errors in tax collection. The result is a healthier cash flow, with resources available for essential investments.

Another crucial point is the use of tax exemptions linked to exports, especially with regard to the ICMS on the transport and export of primary products. Many companies do not adequately take advantage of these exemptions, which increases operating costs. Efficient tax planning and integration between tax and logistics operations can solve this problem.

Tax reform, currently underway, can offer new opportunities for agribusiness, but requires rigorous monitoring to ensure existing tax benefits are maintained. The maintenance of special regimes will be fundamental to the competitiveness of the sector, allowing the Brazilian agroindustry to expand its participation in the international market without transferring the burden of taxes on products.

The solution to these challenges comes through the combination of technology, tax intelligence and an integrated vision of the production chain. Companies that invest in these strategies will be better positioned to compete on the global stage, optimizing their cash flow and ensuring more efficient tax management.

* Vinicio PachecoDirector of operations in the agri-food and electronics sector of Becomex, he is a specialist in technological solutions and tax consultancy.

** This text does not necessarily reflect the opinion of Perfil Brasil.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.