Port sector sees equipment up to 10% more expensive without Report and demands progress in Congress By Estadão Conteúdo

2023-10-06 23:40:36

© Reuters. Port sector sees equipment up to 10% more expensive without Report and demands progress in Congress

Failure to renew the Reporto, a tax benefit that exempts the port sector from the purchase of equipment and machinery, may increase the prices of products eligible for the benefit in contracts already signed by up to 10%, according to estimates by the port sector. The information is contained in a letter signed by eight entities.

The segment also understands that the transfer of this cost to the price of the cargo that reaches the final consumer can increase the Brazil Cost and promote the deterioration of the national inflationary scenario.

The information was shared at a sector meeting with the rapporteur of the Bill that provides for the Report in the Chamber, Paulo Alexandre Barbosa (PSDB-SP).

“The data brought by the representatives shows how fundamental it is to renew the benefit and warns of how worrying the negative impact that non-renewal of the Reporto can have on the population is,” said Barbosa, who is also president of the Parliamentary Front of Ports and Airports (FPPA).

The letter is signed by the Brazilian Association of Container Terminals (Abratec), Brazilian Association of Liquid Terminals (ABTL), Brazilian Association of Port Terminals (ABTP), Brazilian Association of Terminals and Bonded Enclosures (Abtra), Association of Private Port Terminals (ATP), National Federation of Port Operations (Fenop), Brazilian Railway Industry Association (Abifer) and National Association of Railway Transporters (ANTF).

The text proposes a replacement for PL 4885/2016. In the text, the sector proposes that the tax benefit be maintained until December 31, 2028. Furthermore, the wording suggests that dredging companies, secondary zone bonded facilities and professional training centers be added to the group of beneficiaries of the incentive and cross-functional training.

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In practice, the benefit exempts companies linked to the port sector from paying import tax, taxes on industrialized products, contributions to PIS/PASEP-import and COFINS-import on the purchase of machinery, equipment, spare parts and others. goods imported directly by beneficiaries of the regime and destined for their fixed assets for exclusive use in the execution of services linked to the port sector.

The document is based on data from Technical Note nº 1/2023/GAB-SNPTA-MPOR/SNPTA-MPOR of the National Secretariat of Ports and Waterway Transport. In addition to the estimated 10% increase in cost with the absence of the benefit, the justification suggested in the letter reinforces that the port sector contributes significantly to the Brazilian economy.

According to the secretariat, the Brazilian port sector was responsible for around R$42.7 billion in investments in the last 6 years, of which R$37.5 billion corresponds to 109 new contracts and R$5.02 billion to 18 expansions. Furthermore, there is a projection of around R$6.89 billion in public announcements already made. In the same period, there were 25 auctions for port leases, responsible for investments of around R$3.87 billion. An additional 55 port leasing projects are estimated to be in the portfolio from 2023 to 2026, initially in the order of R$6.4 billion.

“When looking at these numbers, it is clear that the value of the tax waiver given the port sector’s contribution to the economy is negligible”, highlighted Barbosa. In 2022, tax expenditure on Reporto was estimated at R$266 million. For 2023, the value should increase slightly and reach R$282 million, which is equivalent on average to 0.08% of the total tax waiver per year.

PL 4885/2016 is being processed conclusively by the Finance and Taxation Committee (CFT) of the Chamber of Deputies, that is, once approved at this stage, there is no need to go through the plenary before proceeding to analysis in the Senate. The sector’s objective is to highlight the topic and the urgency of discussing it in a timely manner to renew the benefit before the end of the year.

There is concern, however, that even with the speed in the Lower House, the Senate will not live up to the sector’s expectations. In this case, the government is studying the possibility of issuing a Provisional Measure to ensure that companies do not suffer the burden of the end of the benefit on December 31, 2023.