Source: Correio Braziliense, 18/08/2004

By Emerson Kapaz *

Certainly, the time has come for
look at the National Congress in a more constructive and optimistic way. Looking back, we will find it in the past
recent vote for the impeachment of an A to this collection of positive and historic attitudes, now comes the CPI of
piracy of industrialized products and tax evasion.

It is an exemplary document. The big news is the
meticulous radiography with names of people and companies, with CPF and CNPJ, in addition to updated statistics, which make up the
disquieting environment of illegal competition in areas ranging from cigarettes and beverages to the recording industry,
copiers and glasses to pharmaceutical products, software, auto parts and pay TV. In the beer sector,
for example, fraud occurs in the purchase of inputs, malt and can, which account for nine out of ten reais in the
production value, in the sales scheme, where an invoice is used for five distribution trips and,
including in the simulation of exports.

In the area of ​​cigarettes, the numbers speak for themselves: of about 144 billion
of units sold, the illegal market accounts for 46 billion. In reais, there are 6,6 billion in the legal market and 1,9
billion in the illegal market. The loss to public coffers resulting from tax evasion amounts to R $ 1,4 billion per year. Or,
the equivalent of about 10% of the credit that the government, through BNDES, makes available to priority sectors of the
industry.
The picture of adversities is repeated in the market in the music industry, with piracy controlling
six out of ten reais of music sales. This meant a heavy blow to the formal industry, which since 1997 until now
lost 38% of its revenue. Another of the negative impacts of product counterfeiting occurs among products
pharmacists. According to data collected by CPI, at least 11 babies and one adult died in hospitals in Rio de Janeiro,
victims of widespread infections after taking pirated drugs.

In relation to software, the
despite piracy having receded, the scenario is still very bad. Since more than half of the market does not pay royalties
country, “every day it becomes more uninteresting to inject new national investments and
international ”. It is worth remembering that this is a business with a turnover of US $ 7,9 billion,
services.

It is worth remembering that in this context the problem of adulteration of
fuels, where authentic mafias continue to act, despite firm police repression. At the root of the expansion of
piracy and tax evasion, and in this respect the CPI conclusions are strong,
“Excessive taxation” and “scarcity and the cost of credit”. Combined, they make it difficult to create and maintain
companies and employment when they do not force the entrepreneur to close the deal. As an offshoot, it offers a unique advantage
competitive to those who act outside the law.

The message that transpires from the CPI document, however, is
encouraging. By the volume and quality of the information, it demonstrates that the public opinion begins to assert its voice. If
in the past it was silent when the international community stigmatized Brazil as a country of slaves, now it is not
shows willingness to accept the stigma of a country where laws do not work. It is a most motivating fact to reveal that
new behavior is required. On the one hand, because there is a feeling of absolute rejection of everything associated with crime
organized, such as piracy and tax evasion. On the other hand, because the country has matured and is aware that it is the
strength of public opinion, not its inertia, which will outline the roadmap for changes. Between one extreme and the other, Congress
Nacional has just given an example that needs to be valued for the courage and legitimacy of a CPI that,
unquestionable, made a difference.

* President of the Brazilian Institute of Competitive Ethics (ETCO)