The Union between the São Paulo government and ETCO strengthens the fight against illegality


The meeting went on for an hour and thirty minutes. At the Palácio dos Bandeirantes, represented by the government, were Governor Geraldo Alckmin and Secretaries Eduardo Guardia, of Finance, and José Carlos de Souza Meirelhes, of Science, Technology and Economic Development. By the Brazilian Institute of Competition Ethics? ETCO, in addition to its president Emerson Kapaz, also participated the advisors Victorio de Marchi, AMBEV, Milton Cabral, Souza Cruz, Hoche Pulcherio, Coca-Cola and Dietmar Schupp, Sindicom, an entity that brings together oil distribution companies.

The objective was to take stock of the advances and challenges in combating illegal competition in the State of São Paulo. Among the facts, one stands out: the installation of flow meters, still in January 2005, by beer manufacturers. This will give new efficiency to the inspection, with a more intense fight against those manufacturers who evade. Afterwards, will the meters also be taken to the soft drink area and, probably, cigarette manufacturers will introduce meters? a version of the sector-specific flow meters - on the production lines.

The governor and the secretaries were informed that the breweries will develop control panels to work in line with flow meters. Result: the Treasury Department and the Federal Revenue Service will receive updated and accurate information to facilitate inspection. During the meeting, the topic of the installation, in São Paulo, of a specialized police station to seize smuggled goods was discussed, along the lines of the police station that already operates in Rio de Janeiro. In parallel, the possibility of installing a police station in Paulínea to inhibit the illegal fuel trade was discussed.

? Is illegal competition contrary to the public interest ?, Governor Geraldo Alckmin said at the end of the meeting. ? It is a serious problem that throws the economy off balance. Based on these findings, the São Paulo government has been working to make inspection more efficient every day and to encourage tax cuts, along with reducing bureaucracy.

A practical example was the reduction of the ICMS tax rates on alcohol, which has been influencing similar measures in other states. In São Paulo, alcohol revenue rose and tax evasion retreated. At the inspection point, the results are also promising, especially in the case of fuels. The Finance Secretary, Eduardo Guardia, informed that the state registrations of 16 companies that operated illegally were canceled.

At the same time, the tax assessment notices already add up to R $ 1,7 billion. In 2002, they totaled R $ 700 million. Last year, they jumped to R $ 1,2 billion. Figures that leave no room for doubt: the partnership between the state government and the Brazilian ETCO Institute has been reaping the rewards it has sown.