Tax evasion equals 30% of GDP
Source: Revista Exame, 09/09/2007
State Agency
Tax evasion in the country has almost the same proportion of the tax burden. For a load that borders on 35% of the Gross Domestic Product (GDP), tax evasion is on the order of 30%. The projection is by André Franco Montoro Filho, a professor of public finance licensed at the University of São Paulo and president of the Brazilian Institute of Ethical Competition - Etco - Etco.
To reach this conclusion, he considered information from five sectors that make up the institute - fuels, tobacco, medicines, drinks and technology - and projected the data for the economy. In these sectors, tax evasion reaches 30%.
A study by the São Paulo State Finance Department confirms the exuberance of tax evasion. The survey reveals that only in São Paulo, a state that accounts for almost a third of GDP, retail trade withholds, on average, 60% of what it sells. There are about R $ 3,5 billion per year, according to the São Paulo State Finance Secretary, Mauro Ricardo Costa. The Trade Federation of the State of São Paulo does not comment on the government study, claiming that it has no research on tax evasion.
If the country ended tax evasion, says Montoro Filho, the tax burden could rise from 35% to 50% of GDP. With that, he argues, it would be possible to reduce tax rates by an average of 20%. Even so, the load would be 40% of GDP, higher than the current one. "Everyone would pay less tax individually and the government would raise more." The information is from the newspaper O Estado de S. Paulo
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Tax evasion equals 30% of GDP
Source: O Estado de S. Paulo, 09/09/2007
SÃO PAULO - Tax evasion in the country has almost the same proportion of the tax burden. For a load that borders on 35% of the Gross Domestic Product (GDP), tax evasion is on the order of 30%. The projection is by André Franco Montoro Filho, a professor of public finance licensed at the University of São Paulo and president of the Brazilian Institute of Ethical Competition - Etco - Etco.
To reach this conclusion, he considered information from five sectors that make up the institute - fuels, tobacco, medicines, drinks and technology - and projected the data for the economy. In these sectors, tax evasion reaches 30%.
A study by the São Paulo State Finance Department confirms the exuberance of tax evasion. The survey reveals that only in São Paulo, a state that accounts for almost a third of GDP, retail trade withholds, on average, 60% of what it sells. There are about R $ 3,5 billion per year, according to the São Paulo State Finance Secretary, Mauro Ricardo Costa. The Trade Federation of the State of São Paulo does not comment on the government study, claiming that it has no research on tax evasion.
If the country ended tax evasion, says Montoro Filho, the tax burden could rise from 35% to 50% of GDP. With that, he argues, it would be possible to reduce tax rates by 20%, on average. Even so, the load would be 40% of GDP, higher than the current one. "Everyone would pay less tax individually and the government would raise more." The information is from the newspaper O Estado de S. Paulo
