Inclusion of rum in the national simple will reduce taxes by up to 40%

With the inclusion in the tax regime of the national simple, micro and small companies producing cachaça must have a reduction of up to 40% in taxes paid on the drink. The assessment was made by members of the Board Chair the Cachaça Production Sector of the Ministry of agriculture, livestock and food supply (Mapa), in a meeting last week at the headquarters of the Confederation of Agriculture and livestock of Brazil (CNA).
The impact of change will be great for the industry, after all, more than 90% of brazilian cachaça is, currently, from micro and small producers. The inclusion of the sector in the national simple was settled at the end of October, with the sanction, by President Michel Temer, the Bill Grow without fear that, among other changes, also adds the wineries and breweries in the simplified tax regime. Most of the measures of the project worth from 2017, but switching to the simple is scheduled to happen from 2018.
The tax burden levied on the cachaça represents, today, more than 80% of the value of the drink. According to Carlos Lima, Executive Director of Brazilian Cachaça Institute (Ibrac), "the rum is one of the most taxed products of Brazil".
Other measures highlighted in the meeting Chair Productive sector Chamber of Rum was the adoption of a regulation of the use of the geographical indication of cachaça by the Board of foreign trade (Camex), from 2017. This gives an assurance that the drink has its origins in certain regions of the country, made by producers in Brazil, which protects the recognition of rum as typically brazilian product and allows the conquest of new markets.