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Brazil: taxes and recycling take centre stage

Tax reform, and specifically taxes on the recycling sector and their impacts, were discussed at a May 8 seminar with the Brazilian government ahead of a new tax reform scheduled for introduction in 2027 which should impact the domestic recycling market.

The recycling sector has a permanent Parliamentary Front at the National Congress for working with the government, supported by more than 200 signatures from federal deputies. The sector’s proposal is to completely exempt the chain from the taxes still levied on recycling in Brazil.

Another agenda item was industry decarbonization through the recycling sector and INESFA. Our national recycling association has the support of the Brazilian steel association, namely IABr, with whom we have been working on this topic with the aim of arriving at the best model.

Individual collectors and co-operatives discussed these tax impacts. Representing those crucial people in our sector who initiate the collection process, their continued subsistence and survival are essential if they are to continue to generate employment and income. Social actions, supportive policies, generation, income and economic success were also covered by the discussions.

The seminar concluded with a conversation between the various recycling organizations - INESFA, BIR and US recycling body ReMA - to demonstrate our global alignment as well as the importance of communication and our unique work in pursuit of best practices and outcomes for the sector. Participants included BIR President Susie Burrage OBE and ReMA’s President Robin Wiener.

The Brazilian market is facing economic uncertainty and difficulties with the federal government’s current spending policy, leading to losses and market devaluation.