Extending the wage tax exemption until the end of 2023 is good news for the Brazilian footwear industry, which will also help the footwear industry to maintain and create more employment opportunities. The extension of wage tax exemption measures approved by the Senate of Brazil will expand the employment of the footwear industry.
In 2021, the employment of the footwear industry in Brazil will increase by 12% compared with 2020.
Arraudeau Ferreira, executive chairman of the Brazilian Shoe Industry Association (Abicalcados), commented that in 2021 alone, Brazilian shoemaking created 37,000 new jobs.
At present, the Brazilian shoemaking industry has directly created more than 282,000 jobs, which plays an important role in the economic development of at least 10 Brazilian states.
According to a survey by the Brazilian Footwear Industry Association, extending the wage tax exemption measures from 2022 can reduce the tax burden of the footwear industry by more than 100 million US dollars.
Wage tax exemption measures began in 2011, aiming at helping labor-intensive economic industries create employment opportunities.
Enterprises in 17 industries will benefit from this, and the company can include 20% of the saved salary expenses into the operating income, that is, increase the total income by 1% to 4.5%, but not including the export part.
Shoe Sewing Machine, Footwear Sewing Machine, computer sewing machine, Industrial Sewing Machine
Post time: Apr-02-2022
