CACB proposes adoption of the Economic Freedom Law by all municipalities in the country

Accompanied by 200 leaders from the productive sector, the president of CACB, Alfredo Cotait Neto, and congressmen from the Parliamentary Entrepreneurship Front (FPE) will debate the improvements brought by the LLE and what must be done so that the advances achieved are spread across the country.

“The CACB, all its leaders and state representations are making this call to all civil society, parliament, public institutions and government agents for a national pact, with a comprehensive and non-partisan aspect, for the complete implementation of the Economic Freedom Law in each of Brazilian municipalities. This law simplified processes and reduced bureaucracy, transforming the Brazilian business environment. We increasingly need to create more dynamic mechanisms, conducive to development and the generation of new jobs”, proposes Cotait Neto.

According to the president of CACB, the law helped to reduce political interference and bureaucracy in the business environment, contributing to the opening of companies. Therefore, he suggests that the standard be adopted by each Brazilian municipality.

“Over the years, many ends remained loose, without regulation, throughout Brazil. Therefore, it is necessary to encourage the law to become a reality in each state and city. CACB advocates that each municipality implement the law completely, to reduce bureaucracy and revoke rules that hinder the good development of the local economy. It is important that states publicize the changes that benefit development so much”, he points out.

LLE numbers five years later

Since 2019 — the year the law was approved — 1,380 municipalities, equivalent to 25% of all Brazilian municipalities, have followed the same path. Of the country’s 27 capitals, only Campo Grande (MS), Goiânia (GO) and São Luís (MA) have not yet said “yes” to the LLE.

In terms of states, Espírito Santo has the highest percentage of cities with the LLE approved: 71.8%. Next come Santa Catarina (67.1%) and Minas Gerais (52.3%).

Economic freedom in Joinville

The adoption of the Economic Freedom Law produced positive effects on the economy of several municipalities. This is the case of Joinville. The city’s Secretary of Economic Development and Innovation, William Escher, says that the approval of the LLE, at the end of 2022, is part of a set of measures that aim to reduce the State’s burden on companies. The city council named this group the Entrepreneur Defense Code, which guarantees rights to local businesspeople.

“Joinville was always recognized as the city of “nothing can do”, because everything was bureaucratic, there was no interesting zoning to be able to undertake business anywhere in the city, licenses took a long time, the public servant could not communicate with the entrepreneur directly. So , we brought an Entrepreneur Defense Code detailing some rights”, he says.

For low-risk businesses, entrepreneurs no longer need approval from the city hall; for those at medium risk, a self-declaration is sufficient; and for those at high risk, a prior inspection is required. Furthermore, business owners now have the ability to issue invoices even before the license is released by the competent bodies.

According to the secretary, more than 600 activities are authorized to operate without any type of prior license from the city hall. He says that the business environment flows more naturally, which has boosted the municipality’s economic activity. “These actions caused the number of companies in Joinville to grow a lot. In the last three years, we created 30 thousand new CNPJs and 30 thousand job vacancies. The feedback that the population itself brings us is that now Joinville is no longer the city of “nothing can”; it is the city of economic freedom”, he points out.

Escher believes that a national pact for the adoption of LLE by all municipalities would bring numerous advantages to the Brazilian economy. “If the Economic Freedom Law has direct action in municipalities, the opportunity for growth in GDP (Gross Domestic Product) and entrepreneurship will be gigantic”, he assesses.

Rio Grande do Sul

In addition to the pact to simplify the business environment and create jobs, CACB officially launches this Wednesday a campaign to rebuild commercial associations in Rio Grande do Sul, which were affected by the floods that devastated the state in recent weeks.

“Through Federa Sul, we will rebuild each of the headquarters and guarantee working conditions, because the responsibility of each association is enormous. Entrepreneurs in wine, tourism, services, so many Gauchos, need our kindness. The Confederation of Commercial and Business Associations of Brazil extends its hands to each commercial association in Rio Grande do Sul so that, together, we can return to the scenario of prosperity that the people of Rio Grande do Sul deserve”, said Cotait.

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