Tax Reform and Mushroom Farming: Benefits and Impacts for Brazilian Mushroom Producers

The recent approval of the Tax Reform brought significant changes to the mushroom farming sector in Brazil. Thanks to collaborative efforts from producers and industry associations, fresh, dried, and frozen mushrooms now benefit from tax incentives that strengthen the mushroom market and support family farming.

Key Benefits for Mushroom Producers

1. Tax exemption for small farmers: Mushroom farmers with annual revenue under R$3.6 million are exempt from IBS and CBS taxes.

   
   

2. Reduced tax rates: Products like fresh mushrooms, dried mushrooms, and frozen mushrooms enjoy a 60% reduction in IBS and CBS rates, boosting competitiveness.

   
   

3. Presumed tax credits for buyers: Companies purchasing mushrooms from small producers can claim presumed tax credits, pending regulation by the Ministry of Finance.

   
   

4. Mycelium included: Mycelium, a crucial input for mushroom farming, also benefits from a 60% tax reduction.

   
   
   
   

Key Considerations for Mushroom Farming

While preserved and temporarily preserved mushrooms are not covered by these tax benefits, the progress made is a significant milestone for mushroom farmers.