Author: Ramona Ordoñez

Source: O Globo Online - Rio de Janeiro / RJ - 10/12/2009

RIO – Tax evasion on alcohol sales in the country increased this year compared to last year. The information was given this Thursday by the vice president of the National Union of Fuel Distributors (Sindicom), Alísio Vaz. According to the executive, this year around 1,9 billion liters of alcohol were sold illegally on the Brazilian market without paying taxes, against the union's estimate of 1,7 billion last year.

As a result, Sindicom estimates a loss of revenue in the order of R$ 1 billion in the year, of which R$ 400 million in PIS/Cofins and another R$ 600 million in state ICMS. In the legal market, according to official data, alcohol sales totaled around 16,5 billion liters, which represented an increase of around 25% compared to the previous year, when 13,2 billion liters were sold.

– It is a challenge to continue in the fight against fuel adulteration and tax evasion, which is worse for the sector as it allows unfair competition in the market – highlighted Alísio, recalling that many actions in conjunction with state treasury departments, inspection agencies and police have been carried out to combat these illegal activities.

Currently, around 150 fuel distribution companies are registered with the National Petroleum Agency (ANP), of which between 30 and 50 operate illegally in the market.

– Unfortunately, there is a culture of tolerance and coexistence with evasion, which is not just a problem in our sector. The framing of tax evaders in Brazil tends to be weak. Our country does not have the tradition of tax fraudsters going to jail, as in other countries – said Alísio Vaz.