STATE TAX INCENTIVES AND THE DEVELOPMENT OF AGRIBUSINESS IN TOCANTINS

Abstract

This study analyzes the contribution of state tax incentives directed at agribusiness in Tocantins to the economic and social development of the State. Initially, it addresses the concept, purpose, and legal limits of these incentives, highlighting their use as instruments for regional development, investment attraction, and the strengthening of economic activity. It also examines the use of ICMS as an instrument of fiscal policy, the role of the National Council for Fiscal Policy (CONFAZ), and the phenomenon known as the “fiscal war.” Subsequently, the study presents a historical analysis of the development of agribusiness in Tocantins, emphasizing the relevance of the sector to the state economy, the growth of agricultural and livestock production, the expansion of production chains linked to rural activities, and the logistical, environmental, and institutional challenges related to the sector. Finally, the study analyzes the Tocantins State Economic Development Incentive Program – Prosperar, with emphasis on its application to the agro-industrial sector, the criteria for granting tax incentives, and its potential contribution to the establishment and expansion of enterprises in the State. The research also considers the effects of these incentives on job and income generation, regional competitiveness, and the challenges related to oversight, transparency, and sustainability of public policies involving tax incentives.