Source: Valor Econômico, 27/04/2009

The reactions caused by the São Paulo government's schedule of tax measures have, at the Finance Secretariat, answers that converge to the same idea: São Paulo wants to combat tax evasion, which generates unfair competition and perverse effects throughout the chain. And in all measures, the state has the law in its favor.

The Finance Secretary, Mauro Ricardo Machado Costa, contextualizes the tax agenda adopted by the State within a set of fiscal measures for both revenues and expenses. On the spending side, the government, he says, has been strict about tightening spending, auditing payroll and cutting undue advantages. In the field of revenues, initiatives such as the sale of assets, the auction of payroll, the fight against tax evasion and initiatives to improve the collection of ICMS are included. “No load increase”, he guarantees.

The São Paulo invoice, which triggered the government's tax schedule in the second half of 2007, he says, targeted retail evasion, estimated at the time at 60%. The Treasury does not yet have calculations on the reduction of this index, but in the first year of the program it recorded a gross increase in the collection of ICMS, which varied from 19% to 30%, according to the retail segment.

“Retail tax evasion generates tax evasion in the entire chain because the retailer does not want to issue invoices for what he buys from the industry,” emphasizes Costa. To close the total encirclement, the tax substitution has been expanded. The secretary says that this tax advance does not generate an increase in the tax burden and that all parameters are discussed with the sectors.

"The products are defined in consensus and the margins are established according to the price research that the sectors themselves order", he explains. Costa recalls that, in São Paulo, margins are being applied by product, differently from other states. In Minas Gerais, the construction material sector established few margins for a large group of products together with the local Treasury, which would have made discussions between tax authorities and taxpayers easier.

“We adopt the margins because we want the ICMS on the price charged. And prices are in the polls ”, he argues. He denies that the farm is closed to changes. “The building materials sector, for example, wants to simplify and reduce the number of margins. It's possible. But if the sector wants to add products with margins of 20% and 50% and place a single margin of 20% for them, it is clear that the Farm will not accept it ”, he warns. The sectors, he says, cannot take advantage of the substitution to reduce the payment of ICMS.

Costa also prefers not to discuss reports that in sectors subject to substitution there is a flight of purchases for suppliers from other states. "If that happens, you need to bring up the specific case."

Along the same lines of collecting what is due to São Paulo, initiatives taken within the fiscal war are included. According to Costa, specific measures against other states, such as what happened with Santa Catarina, will be applied “whenever necessary”. According to Costa, both the decision against the tax benefit of import on account and order, which reached Espírito Santo, and the communiqué against Santa Catarina “Pró-Emprego” were motivated by complaints from São Paulo companies harmed by taxpayers using the incentives. (MW and ZB)