President Dilma Rousseff gave the go-ahead for the proposal to unify two important contributions in force in the economy: Cofins (Social Security Financing Contribution) and PIS (Social Integration Program).

The simplification of the payment of these taxes was a request made by businessman Jorge Gerdau on behalf of the Movimento Brasil Competitivo. Dilma not only approved the idea but determined that her team prepare a proposal to be sent to Congress soon.

The decision is part of Planalto's strategy to individually address measures that, in past governments, were forwarded together in a tax reform and ended up being rejected by the Legislature due to resistance from states and municipalities.

The topic was discussed at a meeting with the president, last week, in which Gerdau and two secretaries of the Ministry of Finance -Nelson Barbosa (Executive) and Carlos Alberto Barreto (Federal Revenue) - also participated, as revealed by “O Estado de S . Paulo".

The idea is to create a model that simplifies the complex collection of the two taxes, which would facilitate inspection and the fight against fraud. There is still no definition for this model, but technicians from the Farm already have suggestions.

One of them provides for the merger of PIS and Cofins and ensures that payments on inputs acquired at a given stage of production are offset throughout the following stages of the production chain.

Today, in the non-cumulative form of collection (the most comprehensive), only certain inputs defined by the government generate credits that are used by companies to reduce payments in the following phases.

The expansion of tax credits has an impact on government revenue from collection of taxes, fees and contributions. Therefore, this proposal may require an increase in the rate, which will weigh on companies' cash.

According to technicians from the Treasury, it is necessary to assess the possible financial losses of the government and the forms of compensation.