Fiesp publishes note in defense of tax reform

The Federation of Industries of the State of São Paulo (Fiesp) released today (6) a note in which it points to the tax reform, on the agenda in the National Congress, as the formula for the country to obtain “more investments, more innovation and less bureaucracy” and manage to boost the generation of jobs. The entity also argues that the proposal could increase the Gross Domestic Product (GDP) between 12% and 20%, over a period of 15 years.

“This means, in today’s money, R$ 1.2 trillion more circulating in the economy”, he points out in the message, published in his site. In Fiesp’s interpretation, the reform must make Brazil’s tax system equal to that of other countries, making it “rational, which has long ceased to exist”.

“The time and resources wasted with tax bureaucracy can be invested in a more productive way. The companies opting for Simples will continue in this system. In the case of the service sector, these companies make up the vast majority”, he adds in the note.

The matter, which is being discussed in the Chamber of Deputies, is at the center of debates with several authorities, since its approval implies effects of great relevance. As shown to Brazil Agency, one of the concerns concerns the impact of the taxation regime on the price of the basic food basket. Last Saturday (1st), the Brazilian Association of Supermarkets (Abras) reported that it carried out a calculation that estimates that the change in charging may cause an increase of 59.83%on average, in taxes that fall on the basic food basket and hygiene items, which the federal government countered, stating that the account ignored credits that the sector must reacquire.

The governor of São Paulo, Tarcísio de Freitas, has been one of the main critics of the tax reform. Yesterday he said agree with “95% of what is being discussed” and suggested a Compensation Chamber to cover any drop in revenue for the states.