New corporate income tax only causes more unemployment and informality


By Paula Alface, Diário de S. Paulo - 07/12/2004

Service providers warn that increasing the tax burden will cause 100 layoffs and push 200 companies into informality
Two hundred thousand companies becoming informal and 100 thousand unemployed. This will be the non-tax effect of the increase from 32% to 40% in the calculation basis of Income Tax and Social Contribution on Net Income (CSLL) for service providers. The Brazilian Institute of Tax Planning (IBPT) started a study on the impact of the measure in the various sectors affected and plans to release the results in full on the 12th, at an event in Curitiba.