Increasing the billing limit for MEI, micro and small companies is “priority number one”, says president of the Parliamentary Front for Commerce and Services

Domingos Sávio is the participant of this edition of Brasil 61 Interview. President of the FCS, the parliamentarian says that the front will represent, in the National Congress, the sectors that, together, are responsible for about 70% of the Gross Domestic Product (GDP) of the country.

And one of the first initiatives that the front intends to carry out is the update of the limit that MEIs, micro-companies and small businesses can invoice annually. This is one of the main demands of small entrepreneurs, since the last update took place in 2018 and, since then, the ceiling remains the same, even with the 31% inflation accumulated in the period.

The federal deputy also stated that he will work to simplify ancillary tax obligations that companies have to comply with, that is, those that go beyond paying taxes. In addition, he defended payroll exemptions and the reduction of bureaucracy for opening companies – two of the major obstacles to job creation.

Tax reform was also the subject of the conversation. Sávio raised the tone against the idea of ​​a single rate for the tax on goods and services (IBS) of 25%, which, according to him, is “absurd” and could cause an increase in the tax burden on commerce and services, in addition to of an inflationary process.

Check out the interview below:

Brazil 61: What are the priorities of the Parliamentary Front in Defense of Trade and Services?

Federal Deputy Domingos Sávio (PL–MG): “Our parliamentary front has a very clear commitment to the segment that most generates jobs and income in Brazil. Absolutely all people, during every day of their lives, interact with commerce and services. It is this sector that produces so much riches and goods for Brazil needs a representation. And that’s how we’re going to work: defending the entrepreneur, the one who has the courage to open his business, employ someone and help our country move forward”.

Brazil 61: The ceiling for MEIs, micro-enterprises and small businesses to remain in Simples has not been updated for five years. What is the front position on a possible review of this limit?

Federal Deputy Domingos Sávio (PL–MG): “It’s among our immediate priorities. We don’t need to wait for the tax reform to solve this problem, which had to have been solved by now. Anyone who has a micro and small company, when it arrives in the middle of the year, has already exhausted its limit. It’s not even at least growth. It’s due to inflation. With a lagged billing ceiling, this segment is being severely harmed and the Brazilian economy is being harmed. This is priority number one: correcting the limits of micro and small companies and the MEI. We need to correct this urgently. It is a top priority”.

Brazil 61: Does the front intend to support PLP 108, which corrects this ceiling, was approved by the Senate and now needs analysis in the Chamber?

Federal Deputy Domingos Sávio (PL–MG): “We have some projects that we are committed to, such as PLP 178/2021, which deals with the simplification of the process of issuing invoices, a standardization for the whole of Brazil. bureaucratic tasks ranging from notes in several books, which many entrepreneurs, especially small ones, cannot understand and, when the inspector arrives, even though the taxpayer has paid all the taxes, he knows that he will end up being fined for some type of so-called ancillary obligation. This is a nightmare in the life of the Brazilian business community. Simplifying this is very important and we already have it in advance, we already approved it in the Chamber, now we just need to approve it in the Senate”.

Brazil 61: Will the front act to reduce the bureaucracy required for opening a company in Brazil?

Federal Deputy Domingos Sávio (PL–MG): “Without a doubt. We have to encourage those who can create jobs and, in Brazil, it’s the opposite. Starting with an absurd thing that is this payroll tax, that is, the more employees you have, the more tax you pay on the payroll. So, it is necessary to relieve the payroll. This is a disincentive to job creation. In addition, we have an infinity of taxes, a terrible bureaucracy. We want to simplify life from the time of opening company, but mainly in the taxation process”.

Brazil 61: Speaking of tax reform, what is your assessment of the proposals that have been discussed in recent days?

Federal Deputy Domingos Sávio (PL–MG): “Ahead of us, one of the priorities and we are already working on it is to be attentive so that the tax reform takes place to improve and not to worsen. Everyone understands that a tax reform is needed in Brazil. We need not only to reduce the tax burden, which is exaggerated, but simplifying the State’s relationship with the taxpayer. Now, the risk in a tax reform is that you suddenly get even worse and we are listening to some things that we cannot accept under any circumstances”.

Brazil 61: What are the main concerns that you have noticed in contact with the trade and services sectors?

Federal Deputy Domingos Sávio (PL–MG): “We’re talking about a single rate of 25% for all operations. I say it’s absurd. Well, it doesn’t make sense. Imagine, for example, the area of ​​education, the area of ​​health, an increase in medical services, hospitals. Imagine all the services that are provided, commerce, you add 25% as a single rate in this segment that, today, pays close to 5%, sometimes less than that. We are attentive, we think that this is not correct. There is a fear on the part of a very large portion of merchants and service providers that we end up carrying out a reform that increases taxes too much, makes it unfeasible, suffocates some sectors. It may even trigger an inflationary process. So we want that we have different rates for different realities. This is something very important”.

Brazil 61: A study published this week by the National Confederation of Shopkeepers (CNDL) shows that, compared to the period between 2000 and 2013, the growth of retail trade slowed down in the last decade, especially in the recession period between 2015 and 2016. and the recovery that was under way was undermined. What to do to promote trade in the country?

Federal Deputy Domingos Sávio (PL–MG): “Here, unlike other countries where much is said about the abuse of consumerism, no. Unfortunately in Brazil we still have millions of Brazilians who do not eat as they would need to. We have people going hungry. Consumption in Brazil cannot be punished. It has to be stimulated and the best way is to be attentive so that we have a better distribution of income. And how do you distribute income in a country that wants to grow? It is not simply giving Bolsa Família. This alleviates poverty absolute. The best income distribution is a job. And how are you going to employ people? Not stopping the economy. If you increase taxes, you will stop the economy. If you make credit difficult, if interest rates remain high, you it will slow down the economy. If the government is a spendthrift, irresponsible government, it will want to charge more taxes, it will have to increase interest rates so that it can continue taking money from the market to finance its public deficit. This is elementary r”.

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