Higher social security rates for Brazilian leather makers
16/05/2012
Proposed changes to social security contributions may take
effect as soon as August 1, subject to approval from the National Congress.
The measures will see furniture, leather, apparel and sports equipment
manufacturers pay 1.5% in social security compared with the current rate of 1%.
Experts claim the former employer social security contribution of 20% was preventing companies from recruiting new staff.
The government subsequently introduced a new tax for certain business sectors on gross income instead of the social security contribution. This latest proposal will act as an amendment to this law.
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