Criticisms of reform: tax burden and slow fiscal transition
Source: Diário Legislativo (RJ), 25/06/2009
Representatives of the federations of the Industries of São Paulo (Fiesp) and Rio de Janeiro (Firjan) and of the national confederations of Industry (CNI) and Commerce (CNC) criticized, on Wednesday, the proposal for tax reform (PECs 233 / 08, 31/07 and others) about to be voted in Plenary.
The reservations regarding the text of the rapporteur Sandro Mabel (PR-GO), already approved by a special commission, were expressed in a public hearing at the Economic Development Commission. Mabel, in turn, countered the criticisms and defended the proposal.
The main complaint is the delay in the transition to the new tax model, which would only be completed in 2021. For the vice president of the Federation of Industries of Rio de Janeiro, Carlos Bittencourt, the post-crisis world must see the advance of G-20 countries, more structured than Brazil, in the markets now dominated by Brazilian companies. The G-20 is formed by the seven richest people in the world together with the main developing countries.
National companies, according to Bittencourt, may not be able to defend their positions even in the domestic market, because of the embarrassments caused by the high tax burden, including on investments and wages - a situation that the reform should resolve only in the long term.
Bittencourt said that the picture for the national industry could worsen in a more competitive world. "The timing of the adaptation [of the tax system] will perhaps be insufficient to provoke investment initiatives by companies," he said.
Forecasts
Roberto Nogueira, from CNC, was even more emphatic: “The model presented does not provide conditions for competitiveness because it is based on forecasts, despite not knowing what will happen in 2021.”
He expressed distrust of Mabel's optimistic projections, according to which, at the end of the reform, the Union will not lose; states and municipalities will collectively earn R $ 37,4 billion per year; and taxpayers will benefit from a reduction in the tax burden. “It seems that everyone wins; and where everyone wins, we should have a look of doubt, because the account will obviously belong to the taxpayer or the company, ”said Nogueira.
Reduction guarantees
The coordinator of the Anti-Crisis Committee of Fiesp, Rodolpho Tourinho, affirmed that the entity will only support the reform if there are real guarantees to reduce the tax burden. This, according to him, is not sufficiently clear in the text: “We can no longer admit the collection of tax on tax”, he said, referring to the calculation, for example, of the ICMS on the final price of products and services with the ICMS itself embedded - criterion maintained in the reform.
Deputy Darcísio Perondi (PMDB-RS), from the Parliamentary Front of Health, lamented the end of the linking of CSLL and Cofins resources to social security (Welfare, social assistance and health). For him, the proposal “weakens the financing of inalienable rights”.
Mabel said he is willing to talk to the parliamentary front on this issue. Minister Guido Mantega should also receive deputies to address this issue.