Wealth destroyed by crime

Brazil has become a breeding ground for smuggling and arms and drug trafficking. Combating such illicit activities involves simplifying taxes

The country has become a fertile market for smuggled and pirated products. Not by chance, it has become the largest global market for illegal Roma. The cigarette of our neighbor, Paraguay, already occupies 48% of the entire national market, a record number that brings enormous damage to the Brazilian economy.
The problem is aggravated because this crime does not come alone. It harms local commerce and industry, reduces tax collection and jobs, increases health risks and encourages organized crime and drug and arms trafficking. Facing the problem requires a tax review so that the sectors, heavily taxed, and which suffer a great impact from smuggling, can remain standing.

The imbalance in regional taxation is evident in the sectors most affected by smuggling and piracy, such as fuel and tobacco. While the tax burden on cigarettes is 16% in Paraguay, the lowest in the world, Brazil, Argentina and Chile charge 70% to 80%.

“The whole world argues that it is necessary to have a higher tax on cigarettes in order to fight consumption. Paraguay ignores this. Hence the regional imbalance. We are encouraging smuggling. The suggestion presented in the last convention of the World Trade Organization (WTO) is the equalization of taxes between Brazil and Paraguay, since the current difference stimulates illicit trade ”, says Edson Vismona, executive president of the Brazilian Institute of Ethics in Competition (ETCO) and the National Forum Against Piracy and Illegality (FNCP).

He explains that the survival of Brazilian companies depends on the effective fight against fraud, such as tax evasion, smuggling, embezzlement and under-invoicing. “We are absolutely convergent. If we didn't have that in mind, these companies just don't survive ”, he laments. For Vismona, everyone loses with tax evasion, because billions of reais are subtracted from the treasury. The country's competitiveness decreases, since companies that pay taxes have to compete with those that pay nothing.

”It is impossible to compete. We suffer this in several situations, we have a weight to push and the others, free and loose, gain market share, but not due to competitiveness, and the country loses by reducing productive investments ”, he points out. The persistent debtor also worries ETCO. According to Vismona, Brazil is experiencing a unique situation, in which entrepreneurs, from all sectors, who are nothing more than bandits, settle in the market, already with the intention of not paying tax. The business of these entrepreneurs includes postponing, as much as possible, the settlement with the tax authorities, leaving the damage to the treasury and the taxpayers.

Only in the fuel sector, Vismona estimates that the loss reaches R $ 2 billion per year. “In the case of cigarettes, over a wider period, R $ 17 billion is irrecoverable. When the Revenue goes after, the company has already closed or changed its CNPJ, warns. There is no more room for the leitinho ”Competitive ethics and the defense of legality are foundations of coexistence, and encourage the development of any country, according to the executive president of the Brazilian Institute of Ethics in Competition (ETCO) and the National Forum Against Piracy and Illegality (FNCP), Edson Vismona.

For him, when analyzing the situation of the richest countries by the Human Development Index (HDI), it can be seen that respect for ethics, the fight against corruption and the defense of the Law guide these nations.

“If we don't have the ethical question raised, and the defense of the law as something absolutely central to our activity, we will always be left behind. And we will get nowhere. This is the basis and foundation for creating a developed country ”, he says. Respect for ethics and defense of the law should guide the debates of candidates for next October's elections, throughout Brazil. In making this defense, Vismona says that debates on taxation and economic development are “absolutely important, in the process of discussing our destiny and what we want for the country”.

“The moment is very important. Brazil needs to take a definitive turn. We are absolutely tired of, at each moment, having a period of growth and then plunging into a situation of recession, the so-called chicken flight. We don't deserve this, ”says the ETCO president.


Vismona welcomes contributions that can raise the debate on important issues in Brazil, such as taxation and security, and that will guide, in a more concrete and consistent way, the country's future. The executive says that simplification is the magic word for the Brazilian tax system. It also emphasizes that businessmen have to respect ethical attitudes, too, since this type of positioning is a stimulus to the development of any nation.

The tax, according to the executive, is a weight chained to the feet of Brazilians. And dragging this iron ball needs to be lighter for taxpayers. “We need to provide conditions for competitiveness, expand competition and make everyone respect the same rules. This is the main content of the actions in which we are involved. We want to strengthen this sense of construction and respect for a country that makes us proud to participate, ”he says.

Founded in 2003,0 ETCO promotes integrity in the business environment. The Institute defends the fulfillment of tax obligations by all and the simplification of the tax system, in order to make it more transparent and less costly to all taxpayers, in general.


Taxes may increase, says Raul Velloso.

For economists, without cutting spending, the public sector will run the risk of having to raise or tax citizens more

It is good that all Brazilians prepare, because the next government should be pressured to raise taxes, to balance public accounts. The alert is from the economic consultant, Raul Velloso. “It will be a disaster if that happens. But we cannot ignore that there is an economic moment to dictate things. And this economic moment shows that the country is plunged into a huge fiscal imbalance ”, he says.

IMG_0358 In view of the difficult situation that government accounts are currently experiencing, with successive deficits since 2014, anything is possible. The prospect is that public accounts will only return to blue in 2021, at best. According to him. the debacle of the government's fiscal situation began in 2010, when the collection of the Union in relation to the Gross Domestic Product (GDP) started to fall. Revenues (before GDP) started to collapse even before the recession hit the scene. And spending continued its upward trend, ”he says.

ForVelloso, the government's fiscal situation is one of the most difficult that the country has ever been through. And making use of the tax increase will be an alternative for the government that will take office next year. The gap expected in this year's accounts is R $ 159 billion. “Nobody agrees to do the other things that could be done. Today, we have the greatest fiscal imbalance in our history, and a situation with a lack of willingness on the part of political leaders to face this, on the side that has to be faced, which is the expenditure side ”, he asserts. In the economist's opinion, it is natural that, to remedy the fiscal deficit, the government brings to the table the discussion of a new round of tax increase. “The problem is that you can't move spending in Brazil. It's impressive". To try to change this situation, he summons entities, such as the Brazilian Institute of Competitive Ethics (ETCO), and society in general, which calls for a lower and better quality tax burden, “for an effort to control and reduce public spending”.

“I repeat, the fiscal imbalance is huge. There will be pressure to increase the tax burden. I cannot say at what moment, but it will certainly come in the next government, because now it is more difficult ”. states. Such a joint effort needs to involve “truly innovative solutions. The effort to improve public spending cannot wait ”, says Velloso. In his opinion, it is necessary to look forward, because if the country is simply raising old problems and not facing the question of the need to cut government spending, the bill will come the easiest way: the high tax burden.

Source: Special section Correio Braziliense, Taxation and Economic Development (14/03/2018)


Correio Braziliense debates the difficulties caused to the country by the tax burden

The structural and bureaucratic obstacles that hinder the country's economic development will be the subject of the seminar Correio Debate: Tax Burden in Brazil, on the 20th. One of the most important points of the discussion is the cost of Brazil, a set of difficulties that make investment more expensive. unemployment, informal work, tax evasion and foreign exchange evasion. Registration is free. To participate, simply register on the website www.correiobraziliense.com.br/correiodebate until the eve of the round table.

The opening lecture will be given by the Secretary of Federal Revenue, Jorge Rachid, at 9 am. Then, Edson Vismona, president of the National Forum against Piracy and Illegality (FNCP), and Efraim Filho, federal deputy and president of the Mixed Parliamentary Front to Combat Smuggling and Counterfeiting, will talk about Taxes: a necessary discussion. Several experts deal with the topic Taxation and legal reflexes.
The tax consultant, former Revenue Secretary, Everardo Maciel, and Roberto Haddad, partner responsible for the Tax Department of Consultoria KPMG, and the executive president of the Brazilian Institute of Competition Ethics (ETCO), Evandro Guimarães, will talk about Custo Brasil and the Brazilian Tax System. In closing, the lecture will be given by José Augusto Fernandes, director of Policies and Strategy of the National Confederation of Industry (CNI).

Evandro Guimarães, from ETCO, argues that if there is an increase in taxes, contraband grows, the government, society and industry lose. Thus, it is crucial that this does not happen and that fiscal and structural measures are adopted that allow a fair competitive environment.

“Taxes are required in all countries. We are not going to discuss whether they are good or bad, right or wrong, but it is important to talk about their intensity and usefulness, ”said Paulo César Oliveira, director of marketing and marketing at Correio Braziliense.


Source: Correio Braziliense (14/09)

Correio Braziliense holds an event that will debate the “Brazil cost”. sign up

DISCLOSURE SITEThe event Correio Debate: Tax burden in Brazil it will bring together experts and authorities in a dialogue on possible obstacles that hinder the country's development and the paths for the resumption of economic growth. One of the points of the discussion is the so-called “Custo Brasil”, the Brazilian tax system. How much do legally established companies in the country spend (in time and money) to satisfactorily fulfill the obligations imposed by current laws? The structure of the tax system, taxes and their readjustments and the advancement of the illegal market will also be discussed in this round table, among other topics. The event is a realization of Correio Braziliense together with the Brazilian Institute of Competition Ethics (ETCO) and the National Forum against Piracy and Illegality (FNCP). Join this debate by signing up for free here. Vacancies are limited.

When: 20/09/2016

Time: 8h30

Location: Auditorium of the headquarters of BRAZILIAN MAIL in DF


Programming: click here


Government sets R $ 66,3 billion in fiscal target for 2015 and sees a 0,8% rise in GDP

Document sent by the government on Thursday (4) to the National Congress revised downwards the estimate of growth of the Brazilian economy in 2015, from 2% to 0,8%, and fixed the primary surplus target at R $ 66,3 billion. - the savings made to pay interest on the public debt and try to maintain its downward trend - in the public sector.

The review was carried out by the Ministry of Planning, Budget and Management, updating the proposal for the primary result goal, of the Budget Guidelines law (PLDO).

Source: G1 - 04/12

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Data center services located abroad are surcharged by Revenue

(Financial Executives - 03/11)

Brazilian companies that hire storage and processing services in data centers abroad will suffer a surcharge calculated at 50%, with the application of Declaratory Act number 7, of the Federal Revenue, published in the October 18 edition of the Official Gazette, coming into force from then on.

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High taxes will have minimal impact on beverage prices, says Revenue

The new multipliers used to calculate taxes on cold drinks - beer, soda, soft drinks, isotonics and energy drinks - will have a minimal impact on final prices, the Federal Revenue Service said on 01/10. According to the agency's general tax coordinator, Fernando Mombelli, prices will rise by a maximum of 0,25% with the increase in the calculation base for the Tax on Industrialized Products (IPI), the Social Integration Program (PIS) and the Contribution to o Social Security Financing (Cofins).

According to Mombelli, canned soft drinks will rise up to 0,17%, and soft drinks in glass bottles will increase up to 0,2%. The prices of soft drinks in PET bottles, which concentrate 80% of the sector's market, will not be readjusted because they did not have the calculation basis changed. For beers, the impact will correspond to 0,23% for returnable glass bottles, 0,25% for canned beer and 0,22% for disposable glass bottles, also called long neck.

The revenue coordinator pointed out that the percentages will not necessarily be passed on to prices. “These are only the maximum impacts, in case the manufacturers decide to pass on the entire tax increase. It is important to remember that the market is free, and companies can absorb the higher tax cost, not least because the percentages are small ”, he claimed.

The increase may not even reach the consumer. Last week, businessmen from the beverage sector met with the Minister of Finance, Guido Mantega, and assured that they will absorb the costs, without increasing prices, until a new tax model for the segment comes into force in early 2015. The discussions started in September and are expected to continue until the end of the year.

Businessmen and the government will discuss a new system to replace the current one, in which the rates are levied not on retail prices, but on a price list researched by Fundação Getulio Vargas and updated annually. The rates, in fact, do not apply to the average values ​​charged to the final consumer, but to a multiplier that reduces the calculation basis to reflect prices in factories.

Source: EBC - Agência Brasil
Collaboration: Pernord Richard

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Program that returns 30% of ISS is implemented in Vitória

Part of the tax that the taxpayer pays in parking lots, gyms, private schools or laundries, will be refunded as a deduction in the Tax on Urban Property and Territorial Property (IPTU) or by deposit in a current account. This Monday, the 1st, Note Vitória started to operate, a program that will generate a 30% credit on the value of the Tax on Services of Any Nature (ISS) for consumers who, upon receiving the Electronic Services Invoice (NFS-e) request the inclusion of your CPF.

Colleges, language courses, construction companies, appliance repair shops, beauty salons, hotels, machine shops and surveillance and cleaning companies are also among the services that will generate credits. To receive the benefit, it is necessary to register on the website www.notavitoria.com.br. However, credits linked to the CPF will be generated automatically, when the Victory Note is issued.

The minimum amount to redeem the credits will be R $ 25, but the benefit must be held by the bank account and must be regular with the Municipal Finance Department (Semfa) at the time of return. Service provision activities that are not required to issue electronic invoices, as per Ordinance 58-2013, such as health plans, tolls, lawyers, accountant, dentist, doctor, services performed by Microempreendedor Individual - MEI (company) will not generate credits. individual framed in Simples Nacional, with annual revenue of up to R $ 60 thousand), financial institutions and notaries.

Source: Portal Revista ES Brasil

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