The authors propose reconsideration of the tax levels and even some exemptions to strengthen the Amazon region forest economy and increase the competitiveness of tropical timber products.
There are proposals for exemption of the tax on Contribution to the Social Integration Program and Civil Service Asset Formation Program (PIS/PASEP), the tax on Contribution for Social Security Financing (COFINS) and the tax on Industrialized Products (IPI).
According to SFB, the entire production chain for Amazonian timber generates some R$7 billion ($3.2 billion), of which it is estimated R$2 billion ($0.9 billion) is paid in taxes.
The exemption proposals will involve a loss of revenue for the government, for example the tax on circulation of goods and services (ICMS), estimated loss R$40 million ($18.2 million).The COFINS tax loss would be R$19 million ($8.6 million) and the IPI tax loss would be an estimated R$28 million ($12.7 million).
The SFB study says the tax reductions will result in increased competitiveness of tropical wood products.
