Alana Dahrouj
Lawyer at Marcos Martins Advogados
On August 8, the Federal Supreme Court ruled that the company is entitled to PIS and COFINS credit on the acquisition of scrap, which includes recyclable inputs, waste, residues or trimmings.
The discussion was brought before the STF to analyze the constitutionality of the express prohibition on PIS and COFINS credit in this case, contained in Law 11.196/2005.
In questioning the constitutionality of the law, a strong argument used by taxpayers was the discrepancy in the treatment given by the state, which taxed recycled products that favor the environment more heavily than products extracted from nature.
In response to this argument, it was decided by a majority of votes that the prohibition of the credit violates the constitutional principles of equality, valuing human labor and the environment.
As a result, the STF overturned the ban, ruling that PIS and COFINS credits can be taken on the purchase of recyclable inputs, waste, residues or scraps.
Marcos Martins Advogados has made its tax team available to answer any questions you may have on this subject.
