ETCO calls for rational solution to fiscal war


Concerned about many impasses of regional investments in the country, due to the legal uncertainty resulting from the fiscal war, the Brazilian Institute of Ethics in Competition defends an intensive discussion in search of a rational solution to the issue of incentives. ETCO's executive president, Evandro Guimarães, says that the solution to the conflict needs to be reached in the National Congress, where the conditions necessary to end the clashes between the states can be negotiated.

“The definitive solution is not easy, but it needs to be discussed, repeatedly, and through the legislative route, which is the appropriate forum for complex issues like this”, defends Guimarães. For him, the biggest challenge is to increase legal certainty, under the risk of investment escaping.

The Executive President stresses the importance of the discussion, possible improvement and approval of the opinion of PLC 130/14 (by Senator Luiz Henrique - PMDB / SC), making the legislative process effective with a view to ending the conflict effective.

In his opinion, approval of the opinion would be a first step in the discussion about the fiscal war.

Guimarães affirms that the approval of this first stage will signal the Congress' willingness to avoid turmoil and even greater legal insecurity, which could be established if the "fiscal war" is resolved within the Judiciary. The Federal Supreme Court (STF) has considered the benefits granted without the consent of Confaz to be unconstitutional and may vote on a binding opinion on the subject.

"If the Súmula Vinculante is approved, projects may cease their activities," says Guimarães. Companies could be at the mercy of administrative and judicial procedures aimed at charging part of the ICMS previously waived by the States, as incentives for regional industrial development.

Governors and Secretaries of Finance could also be sued for granting and maintaining incentives outside the Constitution.