Recife loses R $ 800 million with contraband

By ETCO
30/01/2019
Mayor Geraldo Julio signs commitment to fight smuggling
Mayor Geraldo Julio signs commitment to fight smuggling

Per year, Pernambuco loses approximately R $ 100 million in taxes not collected, related to the contraband cigarette market. In Recife alone, illegal products generated losses of R $ 800 million for the productive sectors during the past year and, currently, 50% of the city's cigarette market is already dominated by these products, coming from countries like Paraguay, which here they are sold below R $ 5, the minimum price established by law.

An articulation of the National Front of Mayors, the Brazilian Institute of Ethics in Competition (Etco) and the National Forum Against Piracy and Illegality, together with the government, proposes actions to combat the problem through the Legality Movement. Yesterday, the mayor of Recife, Geraldo Júlio, signed a term of adhesion to the movement, during the 72nd meeting of the National Front of Mayors, at the headquarters of Sebrae, in Ilha do Retiro. Recife is the second capital of the country to sign a commitment to intensify actions against the illegal market. The first was São Paulo.

“Just like the city of São Paulo, Recife has a profile of a gateway for goods to other locations,” said Etco President Edson Vismona, recalling that these routes are related to drug and arms trafficking, and crime financing . “By curbing the trade in illegal products, we also strengthen local businesses and jobs. Pernambuco is a center of textile and software production, but how to invest if companies buy pirated software and nothing happens? ”, He asked.

The Legality Movement suggests on five fronts of action: measures aimed at removing illegal products; a sustainable movement for their use and disposal; the simplification of practices that discourage formalization; the education of traders and even awareness campaigns for the population. However, the city of Recife did not release a plan. “It is, above all, an awareness role. Inspection is more with the Federal Revenue Service ”, said Geraldo Júlio. On the other hand, the mayor stressed efforts to facilitate the opening of companies, such as the creation of an online system that integrates information from the city hall, Jucepe and the IRS, allowing the opening of companies in 72 hours.