28 NET SALES


	December 31,	December 31,	December 31,
	2019	2018	2017
Gross sales	31,395,955	14,802,821	11,752,459
Sales deductions
Adjustment to present value	(5,316)	(4,984)	—
Returns and cancelations	(109,641)	(75,477)	(50,199)
Discounts and rebates (1)	(3,835,140)	(15,695)	(6,589)
	27,445,858	14,706,665	11,695,671

Taxes on sales (2)	(1,432,908)	(1,263,289)	(1,114,998)

Net sales	26,012,950	13,443,376	10,580,673

¹⁾

The customer contracts of Fibria, a wholly-owned subsidiary incorporated on April 1, 2019, provide for contractual discounts that were maintained and that, therefore, impacted the Company's income in 2019.

²⁾

In 2018, included the social contribution to the National Institute of Social Security (“INSS”), which represents 2.5% of the gross sales revenue in the domestic market. This is a tax obligation pursuant to Law nº.12.546/11, article 8, Appendix I and their respective amendments.