Federal Representative Marcos Montes (DEM/MG) analyses the Wet Blue export taxation

Federal representative Marcos Montes, from Uberaba / Minas Gerais – a traditional Brazilian cattle breeding pole – occupied, in 2007, the post of president of Agriculture, Cattle Breeding and Rural Development Committee of the Chamber of Deputies, in which he worked as defender of Brazilian producers. With a true subject knowledge, the deputy has participated in discussions, meetings and audiences about Wet Blue hide export taxation, and he is always attentive to negative effects that are originated from producer's income.

In an interview granted to COUROBUSINESS, the representative analyses such subject and points new arguments and steps. In addition, he assures that Agriculture, Cattle Breeding and Rural Development Committee will increase the focus in such question, searching for a smart and interesting to country solution.

 

COUROBUSINESS – You were present at the meeting in November 21st, at Economic Development, Industry and Foreign Trade Ministry, and it was discussed, once more, Wet Blue hide export taxation. How can you evaluate such moment?

 

Marcos Montes – The discussion is always legitimate. However, I believe that it cannot be limited to Economic Development, Industry and Foreign Trade Ministry, which is focused on industrial policy and export, because the question surpasses these two public policy areas. And we shall also take into consideration, and this is important too, rural producer income.

 

COUROBUSINESS – Could you tell us more about this?

 

Marcos Montes – anyone knows that incidence of 9% on hide export in the Wet Blue stage returns negatively the value paid to cattleman. In addition to this, the concentration of purchasers (slaughterhouses) imposes downward. This moment, for example, Committee is keeping interlocution with government's economic area – that is, Secretary of the Treasury – in order to refinance rural producer's debts, by elongating them.

One of the subjects is exactly the need of studying in group – private segment, government, parliamentarians – new alternative incomes for producer, so that together with eventual incentives, access to new technologies, he could reach better results. The end of taxation of 9% on Wet Blue represents, thus, a good alternative of improving producer's income. This is one of the reasons I defend the end of taxation.

 

COUROBUSINESS – In 2008, more specifically in March, you leave Agriculture, Cattle Breeding and Rural Development Committee presidency. Do you believe that it will keep at the subject?

 

Marcos Montes – I am sure about that. This subject has entered the Comittee and it remains there. We can promote specific meetings and audiences in order to deal with it. The focus is join producer to industry production, which has originated taxation. It is not enough that the federal government search for solutions for the segment indebtedness, and also adopting a policy which contributes to producer's income reduction.

 

COUROBUSINESS – We heard that the biggest imposition for Wet Blue maintenance and taxation increase would be coming from slaughterhouses. One of the reasons was the use of taxation in order to reward federal public funds that slaughterhouses accumulate by purchasing cattle. Are you arware of this new sitiation of taxation?

 

Marcos Montes – Taxation increase will reduce more and more the price paid to producer, and this is totally incompatible to his reality. However, if this is happening, taxation would foment export, instead of stop it, as we can hear from people pro-taxation, because the higher it is, higher is the credit to compensate. This is one more reason to finish taxation.

 

COUROBUSINESS – Do you have anything else to say?

 

Marcos Montes – I would like to say to producer and tanner that we are by their side in this situation. Nothing more can justify taxation. I understand that, in addition to the Economic Development, Industry and Foreign Trade Ministry, this subject should be present at the Agriculture Ministry and (for producer rights) and the Department of the Treasury, because many income alternatives in order to face rural indebtedness have been discussed there. And, as I said, taxation end is a great income alternative, because it would make slaughterhouses' imposition stop.

 

Revista Courobusines, Ed. 55 – Nov/Dez 2007