Editorial published on January 4, in the newspaper Diário de Pernambuco, addresses the damage caused by smuggling

By ETCO
30/01/2019

Smuggling slows down the country

It is estimated that Brazil loses R $ 100 billion a year from the sale of illegal goods, which are accepted by consumers. Despite recognizing that contraband products are harmful to the country's interests, at least 26% of Brazilians are in the habit of buying them. Among the most commercialized are cigarettes and electronics, clothes, shoes, DVDs of games and films. This share exceeds 30%, among people aged 25 to 34, in classes and E, The data are from the survey commissioned by the Brazilian Institute of Ethics in Competition (ETCO) to DataFolha Instituto de Pesquisa.

According to the study, the consumer blames the weakness of inspection actions for the entry of illegal products in the Brazilian market. In the opinion of experts, the federal government should act with more rigor, mainly in relation to neighboring Paraguay, from where most of the items originate. smuggled.

For 87% of the more than 2 respondents, what weighs in the option for illegal goods is the price in the national market, inflated by the high tax burden. The majority of people interviewed (75%) recognize that the sale of cigarettes would be among the main sources of income for criminal groups, such as the PCC, to sponsor actions that increase the levels of violence and crime in the national territory, but also the traffic in people and drugs.

Still, more than half of consumers are not willing to give preference to domestic products. The increase in criminal sanctions for those who commit smuggling crimes is far from having the desired effects. Today, whoever is convicted may face up to 5 years in prison. In addition to strengthening border enforcement and establishing a more ostensible policy to combat smuggling, it is imperative that the government review the current tax policy.

In a recessionary economy, rising inflation and 12 million unemployed, among other factors, taxes have gained additional weight in workers' pockets. In this scenario, clandestine products, with more attractive prices, win consumer preference, to the detriment of national industry and commerce. Tax reform was excluded from the government's agenda, which faces difficulties in overcoming resistance to the fixing of public spending ceilings, changes in social security, which led it to postpone the debate on changes in labor legislation until 2017.

But the question cannot remain dormant. It is not enough to set limits on expenses, it is necessary to review the forms of collection and to address the disparities in the division of the pie between the Union, states and municipalities, where Brazilians live, who demand a quality offer of essential services under the responsibility of the State.