Experts defend the improvement of tax reform at CDH

Source: Senate Agency
10/02/2020

For the director of the Union of Public Prosecutors of the National Treasury (Sinprofaz), Achilles Linhares, the texts of PEC 45/2019, pending in the Chamber, and the PEC 110 / 2019, discussed in the Senate, focus on the unification of taxes with the creation of the Tax on Operations with Goods and Services (IBS). For Linhares, the measure simplifies the system, but does not resolve the issue of high taxation on consumption.

Proposed amendments to the Constitution under analysis in Congress to change the Tax System do not solve the fiscal inequality in the country, concluded experts who participated in a public hearing of the Human Rights Commission (HRC) on Tuesday (8).

Among all the countries of the Organization for Economic Cooperation and Development (OECD), Brazil is the third country that most levies taxes on goods and services. However, it is the last one in the list when the tax burden on income, profit and capital gain is analyzed.

- Much is said about high tax burden in Brazil, but in fact, we have a bad composition. Among the participating OECD countries, we are on the same average. The problem is that our composition is opposite to that of the others, because in Brazil we violently tax consumption and payroll, much less equity and income - said Achilles.

Another problem pointed out during the hearing is the lack of economic data in the justification of the proposals, noted the professor at the Federal University of Ceará (UFC), Denise Lucena. She demanded statistical studies that prove the effectiveness of PECs in simplifying and reducing the tax burden.

- I want accurate proof that the unification of taxes will be able to reduce the amounts paid. I am very afraid that in this reform as the proposal is, focused on consumption, the burden will fall, again, to Brazilian society - he said.

The Sinprofaz union delegate, José Leite dos Santos Neto, proposed measures such as taxing assets and income; progressive taxation on inheritance; taxation on large fortunes; increased income tax for the wealthiest; elimination of privileges on capital gains and dividends; taxation of excessive or sumptuous consumption; and end of the social security contributions ceiling.

"This is a compilation of what could become a more just tax reform," he said.

The meeting was also chaired by Senator Paulo Paim (PT-RS), the president of Sinprofaz, José Ernane de Souza Brito; the professor at the University of São Paulo (USP), José Maria Arruda de Andrade; Sinprofaz's Director of Professional Affairs and Technical Studies, Sérgio Luís de Souza Carneiro; the professor at the State University of Rio de Janeiro (Uerj) Adilson Rodrigues Pires; and the president of the Brazilian Institute of Ethics in Competition, Edson Vismona.