The resumption of growth and the confidence of the national market

photo-growth-image-postWhen he definitively assumed the Government, President Michel Temer brought new impetus to the Brazilian businessman by stating that he will not increase taxes. This decision retraces the path of trust by generating predictability and security for those who generate wealth in the country.

The measure is so important that Fiesp itself (Federation of Industries of São Paulo) followed by other Federations, took on the campaign of not raising taxes with the duck symbol.

In this sense, the decision has to be for real, applied to everyone, differently from what was done in the not too distant past. Today, all productive sectors are heavily taxed; however, some sectors that have experienced frequent and disproportionate increases to any inflation indicators and consumer purchasing power are noteworthy.

These decisions have caused imbalances in the ethical sphere of competition, which includes having to compete with companies that evade, counterfeit or practice contraband. Take the case of the tobacco production chain, made up of 150 thousand small rural producers, 400 thousand retailers, manufacturers and millions of consumers.

With the IPI increase of 140% in the last five years, smuggling increased by 50%; revenue fell 20% in 2015 alone; legal production decreased 13% in the same year and tax evasion was absurd R $ 10 billion in the same period.

In addition to the indisputable economic effects, other effects of illegality, promoted by successive and disproportionate increases, are equally perverse: the products in question do not suffer any health control from Anvisa; they have no warnings on their packaging; and are sold freely to minors, in addition to causing additional losses, related to the increase in violence rates. When taxes increase, all of these negative effects worsen as a result.

It so happens that, in the current Brazilian reality, in which 35% of the cigarette market is dominated by smuggled products, the increase in taxation is no longer able to reduce consumption - there is only a migration to illegal and cheaper brands - and not even to increase tax collection. On the contrary, they lose the government, the population and the production chain.

It is essential that the federal government does not increase taxes any more, especially that of cigarettes - the sector most affected - in view of the desired growth of the economy and social development of the country.

Only with a balanced, fair, transparent and reliable business environment will we adjust the country's new directions.

  • Edson Vismona is president of ETCO - Brazilian Institute of Competition Ethics and president of FNCP - National Forum against Piracy and Illegality


FECOMÉRCIO / RN promotes debate on competitive ethics and the defense of the Brazilian legal market

ETCO President, Edson Vismona, in a debate promoted by FECOMÉRCIO do Rio Grande de Norte
ETCO President, Edson Vismona, in a debate promoted by FECOMÉRCIO do Rio Grande de Norte

The president of ETCO and FNCP, Edson Vismona, gave the opening lecture of the meeting that the FECOMÉRCIO of Rio Grande do Norte promoted with state and capital authorities, Natal. The theme was “Competition Ethics and the Defense of the Brazilian Legal Market”. The following authorities participated:

Federal Deputy Efraim Moraes Filho, president of the Parliamentary Front to Combat Smuggling; Dr André Horta, Rio Grande Norte Taxation Secretary; Marcelo Queiroz, president of FECOMÉRCIO / RN; Antônio Fernandes, Municipal Secretary of Public Services of Natal; André Roncato, from the National Trade Confederation; Councilor Haroldo Alves; João Felipe Filho, Head of Customs Inspection at the Federal Revenue Service; João Bosco Vasconcelos, Delegate for Defrauding the Civil Police; Dr. Luiz Fabiano Pereira, labor attorney.

After debates, the institution of a Council to Combat Piracy and Illegality was supported, with the participation of the institutions that participated in this important meeting. During his visit to Rio Grande do Norte, the president of ETCO and FNCP also participated in Bom Dia RN, on TV Globo.

Edson VI
Edson Vismona, President of ETCO, in an interview with Bom Dia RN

Smuggling and organized crime

Datafolha research, commissioned by the Brazilian Institute of Ethics in Competition (ETCO), shows that 75% of Brazilians believe that the reduction of taxes on national cigarettes would contribute to the fight against organized crime. Cigarette smuggling, mainly from Paraguay, is the one who supplies the cash and funds the activities of criminal factions, such as drug and arms trafficking.

Check the search result in PDF format

Check out the results of the survey conducted between August 23 and 27, 2016, with 2.081 people in Brazil.


Brazilians' perception of smuggling

In March 2018, ETCO sponsored a new search of Datafolha on the perception of Brazilians in relation to smuggling. Check out.

Federal Court of Auditors: public policy for the country's borders is non-existent

Report presented by Minister Augusto Nardes concludes that greater integration is needed at the federal level for border protection

A report released this Wednesday (9/9) by Minister Augusto Nardes, from the Federal Court of Accounts, presents a bleak scenario for public policies aimed at Brazilian borders. The report is a diagnosis of the stage of development in which the governance system inserted in these policies is located, of its components related to institutionalization, plans and objectives.

One of the main conclusions of the work is that, currently, the country does not have institutionalized policies in law to guide, in an integrated way, the governmental action related to border issues, which contributes to this being a theme marked by several weaknesses.

Source: Amambai Notícias website (09/09)

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