Tax Burden Seminar in Brazil


The seminar Correio Braziliense: Tax Burden in Brazil was held on September 20 in Brasilia, a partnership between the newspaper, ETCO and the National Forum Against Piracy and Illegality (FNCP). The event was an opportunity to discuss the need to revise the tax structure as a way to boost the growth of the national economy, and brought together experts and authorities on the subject.

For the Federal Revenue Secretary, Jorge Rachid, it is necessary for the country to adopt a more rational tax model. "It is necessary to balance the rates on some products to minimize the growth of smuggling, tax evasion and other illegal practices," said the secretary.

The Brazilian tax burden, which today corresponds to 32,66% of GDP, has a harmful effect on the economy and is a source of stimulus for the unbridled growth of the illegal market. In the cigarette sector alone, the product most impacted by smuggling, the tax evasion verified in 2015 due to this crime was R $ 4,9 billion.

Edson Vismona, president of the FNCP and who this month also assumed the executive presidency of ETCO, recalled that the increase in cigarette taxes in recent years has contradicted government expectations. "The result of this policy was an 8% reduction in the market for legal products, but a 9% growth in the Paraguayan cigarette market," he said.

Vismona also recalled that the losses are not restricted only to the country's economy, but have negative effects on the health of the population, since these products do not respect the rules imposed on Brazilian companies by health authorities, and also on safety in cities, as this it is an activity dominated by criminal factions.

In 2015, Brazil recorded a loss of R $ 115 billion due to the illegal entry of illegal products into the country, which includes losses from the national industry and taxes that are no longer collected due to smuggling, among others.