Montoro: "Discussions about Federalism have stalled Brazilian tax reform"

By ETCO

Author: Deco Bancillon

Source: IG - Economy - COLUMNS - 04/06/2010

Discussions about the Union's participation in the tax pie prevented Brazil from carrying out a consistent tax reform project, says the president of the Brazilian Institute of Ethics in Competition (ETCO), André Franco Montoro Filho.

“It was the discussions about Federalism that stalled Brazilian tax reform,” he complains.

In his opinion, the country will only be able to restructure the tax model if it manages to deal with the federalism issue separately.

“In my opinion, which is decentralized, I believe that States and municipalities should keep most of the tax pie, and not the other way around, as is the case today. Regardless of whether there is a change in this model or not, it is important to treat the issue of tax reform separately ”, he says.

Author: Deco Bancillon, from Brasília