Billion loss


Source: O Estado de S. Paulo, 03/09/2007

On behalf of the Brazilian Institute of Ethics in Competition (ETCO), I congratulate journalist Lu Aiko Otta for the excellent story Industry complains about a billionaire loss (31/8, B5). Cheating importers declare a much lower price and therefore pay less tax. This is because the tax is calculated on the price, that is, the ad valorem tax. But why not use the ad rem tax? In this form of collection the tax is fixed per unit. This tax is used in several places in the world and in Brazil it is used by the sectors of beverages, fuels and cigarettes to combat tax evasion.

It would be time to use it in this “importabando”. This is the suggestion that ETCO makes to defend the national industry and combat tax evasion.

Chief Executive Officer of ETCO
São Paulo