RIO DE JANEIRO, March 22 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
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.