The existing payroll tax relief was revoked at the beginning of this year after a long back-and-forth. Payroll tax, which was cut to 1-4.5% for the 17 industries (1.5% for footwear) since 2011, will now be gradually increased to 20%.

The group of industry representatives, under the banner Desonera Brasil, continues to call for a reinstatement of the payroll tax relief.

At the meeting, Abicalçados Executive President Haroldo Ferreira said: “The footwear industry began 2024 with many uncertainties on the national and international scene, with unfair competition imposed by international e-commerce platforms and with this imbroglio that should have already been resolved. The increase, if it occurs, will further reduce the competitiveness of the activity, putting thousands of jobs at risk.

“If the re-encumbrance occurs, we estimate the loss of more than 30 thousand jobs in the next two years alone, in addition to a drop of around 20% in our production.”

The manifesto is supported by 35 organisations from the 17 affected industries, and highlights that the Tax Reform approved in 2023 provides that the regulation of tax aspects on work and income must be assessed by the National Congress, which would rule out the possibility of a unilateral decision via a provisional measure.