After 10 years, Article 146-A of the Constitution receives bill in the Senate

By ETCO
21/05/2013

Senator Delcídio Amaral (PT-MS) filed, on May 7, the Senate Bill (PLS) 0161/2013, which regulates the establishment of special taxation criteria with the objective of preventing competition imbalances, under the terms of Article 146-A of the Federal Constitution

Approved ten years ago, article 146-A aims to prevent competitive imbalances caused by tax fraud, through the adoption of special taxation criteria not only by the Union but also, after the promulgation of PLS-0161, by States, Federal District and municipalities. One of the factors that cause unfair competition between companies in Brazil is the use of tax evasions to reduce the cost of products in relation to competitors who comply with tax obligations, thus obtaining illicit competitive advantages.

This occurs when there is an anomaly in the functioning of the market capable of affecting the mechanisms of price formation, free competition and freedom of initiative, as a result of acts in any form manifested by an economic agent, which allow the non-payment of tax borne by other contributors.

“We believe that this is one of the most important steps in the fight against unfair competition in the country in recent years. Senator Delcídio's proposal deserves our full support, not only for the opportunity of the initiative, but also for the correctness of the proposals contained therein ”, says ETCO's Executive President, Roberto Abdenur. He recalls the Institute's active participation when the inclusion of Article 146-A in the Federal Constitution.

Among the instruments that may be implemented by the Complementary Law is single-phase taxation, which, through tax substitution, allows taxes spread throughout the production chain to be collected at once. “Today, states already apply this mechanism, but since there are no regulations, each one does it differently. The Law will come to standardize this, in addition to other important procedures to combat tax evasion ”, concludes Abdenur.