The Federation of Commerce of Goods, Services and Tourism of the State of São Paulo (FecomercioSP) is among the entities responsible for a proposal to simplify the tax system delivered to President Dilma Rousseff this Monday (6). The president received the material during the inauguration of the new presidency of the Commercial Association of São Paulo and of the Federation of Trade Associations of the State of São Paulo, at an event at Clube Monte Líbano.

For the president of the Superior Council of Law of FecomercioSP, the tax attorney Ives Gandra Martins, since the 1990s, there have been many proposals for changes in tax legislation, but the organization of civil society entities for the construction of a project in this area can contribute to make them effective.

The Simplification and Rationalization Program of the National Tax System is the result of the actions of a working group, coordinated by the São Paulo Commercial Association, by FecomercioSP and by the Brazilian Institute of Competition Ethics (ETCO), with the participation of the Union of Accounting Services Companies , Advice, Expertise, Information and Research from the State of São Paulo (Sescon), from the Federal Revenue Service, and from the São Paulo State Finance Department.

The mayor of São Paulo, Fernando Haddad, present at the ceremony, was interested in the proposal and opened the doors of the city hall to participate in groups such as the one that originated the document. According to Haddad, tax complexity is one of the main obstacles to the competitiveness of São Paulo and the country.

The proposal delivered to the president comprises a set of rules to improve the Brazilian tax system, including a Constitutional Amendment Proposal (PEC), a Complementary Law Draft (PLC) and an Ordinary Law Draft (PL). The three measures are connected and serve to simplify and streamline processes, provide greater legal certainty, change some provisions of the National Tax Code and adapt the legislation to the current demands of Brazil.

Among the measures suggested in the PEC are the prohibition on the publication of a provisional measure that provides for tax matters to avoid legislative excesses of the executive branch; prohibit the collection of taxes before six months of the law that instituted or extended them (currently the term is 90 days) and revoke the impediment of hiring by the government or granting benefits to companies in debt with the social security system.

The draft law contains suggestions such as the regulation of financing and refinancing of tax debts; amnesty restriction so that this type of benefit is granted only in cases of calamities and debts of small value; and the obligation for the Public Treasury to publish, in the previous year, the selection criteria for the annual individual income tax return, among others.

During her speech, Dilma Rousseff spoke of the creation of the Small Business Secretariat and the importance of small entrepreneurs for strengthening the national economy. Micro and small companies represent about 90% of Brazilian companies, but still account for only 20% of GDP.