STF suspends injunction against Flow Meter


Author: ABIR

 Minister Ellen Gracie, of the Federal Supreme Court (STF), overturned an injunction from the Federal Regional Court of the 1st Region (Brasília), which suspended the obligation to install SMV (Flow Meter System) imposed by the Federal Revenue. The minister understood that the suspension would bring a serious risk of injury to the economic order.

The Brazilian Association of the Soft Drink and Non-Alcoholic Beverages Industries (ABIR) points out that its 43 members already have the system in their production lines.

"It is about complying with tax legislation", says the executive director of ABIR, Paulo Mozart.

The Association of Soft Drink Manufacturers in Brazil (Afrebras) plans to appeal next week to modify the decision on the grounds that the installation is very expensive, which would make the continuity of the companies' activities unfeasible.

According to ABIR, the argument that these companies cannot afford to take over the installation is irrelevant. According to Paulo Mozart, the total installation cost is less than 10% of the advertising budget spent by small and medium companies. "The big problem is that there will be stricter control to curb tax evasion, which large companies are favorable for wanting a more ethical market", says the director of ABIR.

With the end of the injunction that suspended the installation obligation, companies that do not have the system are susceptible to the Federal Revenue Service notice, since the installation deadline expired on May 31.

The installation of a flow meter system was foreseen, in Provisional Measure No. 2.158 / 35 of August 2001. Then it was regulated by the Normative Instruction of revenue No. 587, of December 2005, and by a Declaratory Act No. 13, March 2006.

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