Brazil to stimulate exports of soy meal, oil over beans -report
RIO DE JANEIRO, March 22
RIO DE JANEIRO, March 22 (Reuters) - Brazil plans to change taxes on its soy industry to stimulate exports of higher value-added items such as meal and oil, Valor Economico newspaper reported on Friday.
The measure could favor big multinational crushers such as Bunge Ltd, Cargill Inc, Archer Daniels Midland Co and Louis Dreyfus Corp.
The plan is to scrap soy processors' tax credits in the domestic market and instead allow them to be applied to export sales, Valor said, citing a source involved in the negotiations between the industry and the government.
Makers of higher valued-added products such as soy meal and oil would benefit from larger tax credits, while there would be smaller incentives for soybean exports. That would be a reversal of the current tax regime, which has made Brazil a bigger exporter of soybeans.
The move would stimulate Brazil's exports of meal and oil, making it more competitive with neighboring Argentina, whose tax system also favors meal and oil exports.
With the new tax structure, the government hopes to change the profile of Brazil's soy exports, increasing the sale of industrialized products.
Valor said the government had already reached an agreement with soy companies on the new model. They are now discussing percentages for the tax credits.
Brazil will compete this year with the United States as the world's largest exporter of soybeans.
A spokeswoman for Brazil's Finance Ministry was not immediately available to comment.