The government will send Congress a package to make it easier to collect taxes from companies covered by the Simples Nacional program. According to the Minister of Micro and Small Business, Guilherme Afif Domingos, there will be a loss of annual revenue of 3,94 billion reais with these new measures proposed. This is because a “transition ramp” for tax collection will be created as the revenue of these companies grows. Thus, the government will stop charging a higher number of higher rates and reduce the contribution ranges within the Simples from twenty to seven.

"We are aware of the current fiscal precariousness, but we are sure that the growth of companies will offset the loss of revenue," said Afif. If approved by June, the new rules would become effective in 2016.

The Secretariat of Micro and Small Business calculates that, if businessmen from commerce, industry and services registered in Simples register an average growth of 4,2% per year, the eventual tax waiver would be zeroed out by the increase in collection resulting from the increase in revenue.

Source: Veja.com - 08/01

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