Source: DCI, 12/11/2007

SAO PAULO - "The federal government has no interest in reducing the tax burden", said on Monday (12), Everardo Maciel, former secretary of the Federal Revenue, in response to the promise (made on November 1) Minister of Finance, Guido Mantega, to complete the text of tax reform. Approval is essential for the government to obtain support from the PSDB in approving the PEC (constitutional amendment proposal) that extends the collection of the CPMF (Provisional Contribution on Financial Transactions).

Maciel criticized the tax reform proposed by the government and guaranteed that it should not happen, classifying it as a “scene game” and “pure demagogy”. “The danger is if it is not a stage game. After all, every irresponsible person is audacious, ”said the former secretary.

The aim of the reform is to simplify tax collection and end the tax war. It will unify the legislation of the ICMS (Tax on Circulation of Goods and Services), the main tax of the States, and create a fund for economic development of the less favored areas of the nation.

According to Maciel, “there is no successful constitutional tax change” and guaranteed that “there is nothing that cannot be made worse”, in relation to the current Brazilian tax burden. “Every time the idea of ​​extending the CPMF comes up, they discuss a reform again. Tax reform does not mean anything, it is an ambiguous, timeless and universal concept, as there is no tax standard in the world ”.

The ex-secretary defined a series of problems that must be thought about and faced in order to enable a reform in the Brazilian tax system, including: complexity of the ICMS (diversity of rates, calculation bases and legislation, tax war and credit accumulation); complexity of PIS / Cofins; excessive taxation of the payroll; inconsistencies and timidity of the simplification process; excessive number of taxes and contributions.

As for the fiscal war between the states, Maciel emphasized that “the fiscal war is fought with compliance with the law. It does not end because there is no interest from the authorities in solving the problem ”and he quipped saying that in Brazil (and with its current tax system) we live in a“ tropical welfare state ”. "We pay taxes and do not enjoy the basic services that should be offered to the entire population".

Everardo Maciel participated today in a plenary meeting at the Commercial Association of São Paulo (ACSP), debating the topic of Tax Reform, lecture: "What to change or not in the Brazilian tax system", aimed at businessmen.