Cana also wins with LCA without tax
The agricultural segment of the sugarcane industry will also benefit if the Letras de Crédito do Agronegócio (LCA) are tax-free.
Ensuring that the titles will no taxation of income tax was made by Minister of Agriculture, Katia Abreu, during remarks at the opening of the seminar ‘Prospects for the Agribusiness in 2015/2016’, organized by the BM&FBovespa and the Ministry of Agriculture on Tuesday (16) in São Paulo.
Until then, the rumors that the LCA for individuals would tax by the income tax were cultivated by the very federal government in its implementation of the fiscal adjustment program.
As agribusiness as a whole, the agricultural segment of the sugar and ethanol industry has to gain with the maintaining of the LCA exempt from taxes because they, that are title of credit of exclusive emission of the public financial institutions or privates, amplify the power available to agricultural funding, including funding or loans related to the production, marketing, processing or manufacture of agricultural products or inputs and machinery and implements used in agricultural production.
To get an idea of the importance of LCA as the financing arm of agribusiness, the stock of LCA’s registered at the BM&FBovespa is in R$ 120 billion.
According to Fábio Dutra, Commercial Director of New Business Development at BM&FBovespa, the market had a concern with the possibility of taxation on titles such as LCA.
With the assurance of the minister, the expectation, he says, is for continued growth of this market. “And now also as a source of reinvestment in the industry itself,” he amended, referring to the decision of the National Monetary Council (CMN), which requires the direction of at least half of the proceeds from the LCA for rural credit operations.
It is a way to extend the financing of the 2015/16 crop.