Tag: Robert Abdenur

Underground economy: the reasons for the slowdown

The good news is that the so-called underground economy has been dropping since 2003, as shown by the data released today by the Brazilian Institute of Competition Ethics (ETCO) and by Ibre / FGV. That year, it was 21% of GDP and, in 2012, it was 16,6%. This last figure represents a reduction of 0,3 points in relation to 2011. The bad news is that in the last two years, the rate of decline in the underground economy, which captures not only informality, but also the production of goods and services reported to the government, which is outside GDP, has been decreasing.

Economist Fernando de Holanda Barbosa Filho, from Ibre / FGV, explains why this has been happening:

- This slowdown is basically due to the decline in formal hires by the industry and the growth of the service sector, which is labor intensive and very dynamic, but has higher levels of informality than the industry. But in general, despite the reduction in the rate of decline of the index, the result is still positive, as it is necessary to take into account that, even with the low performance of the economy in the year, informality continues to fall - he said.

According to the executive chairman of Etco, Roberto Abdenur, despite the government's efforts to create measures to facilitate formalization, membership levels in the commerce and services sectors, where small entrepreneurs predominate, are still very low.

- Since the end of 2012, it has been observed that the growth of the formal labor market has reached its limit due to two major factors: the rigidity of labor laws and the low level of education of the Brazilian - says Abdenur.

Informal economy reaches minimum in ten years despite Pibinho, says FGV

Jornal do Comércio - RS - Porto Alegre / RS - ECONOMY - 10/07/2013

O Globo Agency

The so-called underground economy, production of goods and services not reported to the government, corresponded to 16,6% of GDP in 2012, the lowest rate recorded in a decade. The mark was reached in the year in which the economy as a whole had an increase of only 0,9% and represents a decrease of 0,3 percentage point in relation to 2011. In values, it totaled R $ 730 billion, according to an estimate released on Wednesday by the Brazilian Institute of Competition Ethics (Etco) in conjunction with the Brazilian Institute of Economics of the Getulio Vargas Foundation (Ibre / FGV).

The strong job market, with the generation of formal jobs, explains this behavior, according to FGV / IBRE Applied Economics researcher Fernando de Holanda Barbosa Filho. "Informality falls systematically, even in years of crisis, which means that institutionally we are improving, but the smaller falls are signaling an exhaustion", he says.

ETCO's executive president, Roberto Abdenur, says, however, that although the picture is positive, Brazil is still far from international levels of informality, which are around 10%. He cites bureaucracy, insecurity in the economy, ignorance about the step by step to formalize and low schooling as factors that have also hampered formalization. "With the current level of indebtedness, there is a slowdown in credit, which seems to indicate the tendency of the rate to stay where it is, close to 16%", he evaluates.

Barbosa Filho also considers that the signs of job depletion, income and credit this year may impact the next results. “The economy is no longer helping as before. Credit expansion has stopped, and with that, part of the stimulus to formalize as well. The trend is not continuing. We need institutional change, reduce bureaucracy and deregulate the labor market, although this is highly unlikely to happen ”.

Research recently released by SPC Brasil and the National Confederation of Shopkeepers showed that almost half (49%) of the interviewees do not know what to do to regularize their business. In addition, among those who want to expand the business this year, the majority do not intend to formalize it because they fear bureaucracy, falling income and new costs.

 

Competitive advances demand tax simplification

June 2013 | Economic Environment | Interview


June 17, 2013 | This year, the Brazilian Institute of Ethics in Competition (Etco) is ten years old. To celebrate, it promotes a debate agenda distributed between Rio de Janeiro, Brasília and São Paulo, in order to analyze the evolution of the competition scenario in Brazil. “One of the highlights of this period was the great advance of Brazilian civil society”, says ambassador Roberto Abdenur, executive president of the Institute. In an interview with Conjuntura Econômica, Abdenur also addressed the study carried out in partnership with FGV / IBRE on informality in Brazil, and the country's position when it comes to the global competitive environment.

Economic Situation - How do you evaluate the evolution of the competitive environment in Brazil since the creation of Etco, in 2003?

Roberto Abdenur - In the first event that we held, in Rio de Janeiro, the evaluation was positive regarding the fact that the country makes significant improvements in its business environment with regard to the importance of fair and balanced competition in combating tax evasion, strengthening institutions. And also the need for more transparency in the relationship between the tax authorities and taxpayers, based on a broader concept of fiscal citizenship with a view to developing a partnership relationship, rather than distrust, as sometimes still occurs.

CE - What are the main advances and setbacks of the period?

RA - The country's development since the re-democratization, the improvement of income and the easy access to information have made Brazilian civil society to develop extraordinarily. Even more than it was possible for the institutions to accompany it. So much so that there are always new demands to meet. But there is no doubt that there were important movements aimed at economic stabilization, the development of more solid institutions, with more modern laws. As an example, I can mention the creation of the Federal Comptroller General (CGU), the law on access to information, the creation of the National Justice Council - with supervisory and monitoring bodies -, and the parallel creation of new legal and administrative instruments for improve the dialogue between society and its leaders. But we still have serious problems, such as the sluggishness of the Judiciary, as well as the complexity of the Brazilian tax system, which is far below what the country needs to have a more dynamic economy, so that society can continue rising to higher levels of development .

CE - The latest version of the study “Underground Economy”, carried out by Etco in partnership with FGV / Ibre, in December 2012, points to a slowdown in the reduction of informality in the country. What is the reason for this trend?

RA - Since 2003, there have been many government initiatives that have contributed to the reduction of informality. This, combined with good economic performance, with the increase in formal employment, created a positive environment for a reduction of informality from 21% of GDP in 2003 to just under 17% now. But we have reached a stage where the general circumstances, the status quo, do not allow us to see further progress in terms of reducing informality, which is still high. Although measures such as the Microempreededor Individual (MEI) and Simples tax regimes are commendable, we have to move forward on more structural points, such as the increase in schooling. I was impressed to see in a TV report that many people who are in the informal sector today have no idea how to formalize and what the benefits of formalization are.

CE - How do you evaluate Brazil's position as an actor in the context of global competition, with the country being one of the most closed economies in the world?

RA - We are the most closed economy of the G-20, and naturally an environment of low permeability, of less interaction than is desirable with the outside world, does not facilitate further progress in terms of modern institutions and laws in Brazil. Global competition is somewhat outside the scope of what has been our debate, but I would say that the more open Brazil is to the world, the more chance it will have to progress. Now, when we talk about the closed economy, we are saying that the coefficient of exports and imports is low in relation to GDP. Painting an isolation picture as a result does not correspond to the truth, since Brazil has received an average of US $ 60 billion in foreign direct investment in recent years, with a productive effect on the economy. Today you have a phenomenon that 20 years ago did not exist, which is that of Brazilian multinationals spreading around the world. These large companies enter an international business that is very sophisticated, demanding, in which it is not enough for you to be efficient and competitive. You have to be compliant, in the sense of fulfilling your duty with regard to standards of behavior, social responsibility, environmental responsibility, and fighting corruption.

CE - As an ambassador with a broad history of representing the country, what is your assessment of the victory of Roberto Azevêdo to the directorate-general of the World Trade Organization (WTO)? What indirect benefits can this result bring to Brazil?

RA - Firstly, it was a good result for Roberto Azevêdo's personal merit, as he is a great professional. With my long memory of foreign policy - after all, I joined Itamaraty in 1963 - I also see that this election reflects the recognition of a very noble trajectory of Brazil in the GATT (General Agreement on Trade and Tariffs, in Portuguese) and in the WTO. This is a curious paradox, because Brazil has historically accounted for just over 1% of international trade, but it has always been a decisive actor. Now, as general director, Roberto naturally leaves the sphere of representing the interests of Brazil, as he will have to act independently and sometimes even in dissonance with our interests. On the other hand, Brazil cannot condition its postures to the concern of Roberto's success.

CE - What is the focus that Brazilian foreign policy should have today?

RA - At the moment, Brazil needs to make a deep reflection involving businessmen, government, academic circles, civil society, press, about what our international insertion will be in the future. Brazil is lagging behind in several important movements that occur in the international economy. In this sense, it is on the sidelines of very important processes that tend to bypass the WTO. We have every interest in strengthening the WTO, both as a standards-setter and as an arbitration body for disputes, and as a factor of commercial liberation. But it is difficult to move on these three lines at the same time. And we are seeing a proliferation of bilateral regional and interregional trade and investment agreements that will, in many cases, tend to set new standards, introduce new themes, and require a major update of thinking. We have three cases that should call attention: the Transpacific strategic agreement, the US trade and development partnership with the European Union, and the Pacific Alliance, the latter involving Chile, Peru, Colombia and Mexico. These Latin American countries are not turning their backs on Brazil, but are acting on the basis of a very clear view that their interests have to do with Asia and international free trade. So we cannot depend only on the WTO, nor can we be tied indefinitely to a Mercosur that is paralyzed and that has fallen back in many cases, where a great partner, Argentina, is in a very difficult situation, very protectionist. There is a tram that will pass here within our reach, which is the resumption of free trade negotiations with the European Union. It’s a subject that has been going on for over 12 years without progress and now D Day is coming, a definition of whether Brazil will embark alone, or will be accompanied by countries like Paraguay and Uruguay in serious negotiations, or will be restricted to Mercosur, that is languishing. It is a moment that deserves much debate and reflection.

ETCO presents lecture in Salvador on combating piracy in Brazil

Source: Tax News

The institute's executive president, Roberto Abdenur, will participate in a panel at ENCAT with representatives from the Finance Secretariats of SP and MG

The executive president of the Brazilian Institute of Ethics in Competition (ETCO), Roberto Abdenur, will participate next Wednesday (20), at 9:40 am, of the 47th National Meeting of State Tax Coordinators and Administrators (ENCAT), in Salvador, Bahia. The executive will give a lecture during the panel Combating Illegal Trade, which will also be attended by the representative of the Finance Secretariat of Minas Gerais, Marcos Rogério Baeta Pereira, and the representative of the Finance Secretariat of São Paulo, José Eduardo de Paula Saran.

In his lecture, Abdenur, he will show all the actions developed by ETCO to support the fight against illegal trade in the country since its foundation, in 2003. Member of the National Council to Combat Piracy and Intellectual Property Offenses (CNCP), ETCO since 2009, he has been the manager of the Cidade Livre de Piracy Program. "Brazil has, in piracy, a serious challenge for development, a relatively new social and economic phenomenon, but one that grows exponentially, supported by criminal organizations", says Abdenur.

According to Eudaldo Almeida de Jesus, general coordinator of ENCAT, the choice of this approach was strategic for the current Brazilian scenario. "The definition of the theme occurred in the last ENCAT, since piracy and illegal trade violate the legislation, resulting in tax evasion and a consequent reduction in revenue for the States".

The 47th National Meeting of State Tax Coordinators and Administrators (ENCAT) takes place from March 18 to 21 in Salvador, BA.

 

About the Free Piracy City

As a member of the National Council for Combating Piracy and Intellectual Property Offenses (CNCP), an organ of the Ministry of Justice, ETCO has been managing the Cidade Livre de Piracy program since 2009. Started in 2010 and already implemented in São Paulo, Curitiba, Brasília, Belo Horizonte, Osasco, Vitória and Rio de Janeiro, the project municipalizes the fight against illegal trade in products. ETCO's goal is to involve all the host cities for the 2014 FIFA World Cup in the program.

 

About ETCO

The Brazilian Institute of Ethics in Competition, ETCO, is a civil society organization of public interest (OSCIP) founded in 2003 with the objective of identifying, discussing, proposing and supporting actions, practices and projects that result in concrete improvement of the business environment in the Brazil. To this end, it acts to influence decision-makers to adopt measures aimed at reducing tax evasion, illegal trade and informality, in addition to actions to simplify the tax system and combat corruption and other misconduct. The institute seeks to maintain a strong presence in the Brazilian business and political circles in order to create mechanisms and tools that strengthen competitive ethics. There are three action strategies: to foster studies on the factors that encourage these deviations in conduct; propose and support initiatives, actions or changes in legal texts and administrative practices; and to develop and support actions to raise public awareness about the harmful social and economic effects and the dangers of these illegalities and social leniency with these deviations from ethical behavior.

ETCO presents lecture on combating piracy in Brazil at the 47th ENCAT

The institute's executive president, Roberto Abdenur, participates in a panel at ENCAT with representatives from the Finance Secretariats of São Paulo and Minas Gerais.

The executive president of the Brazilian Institute of Ethics in Competition (ETCO), Roberto Abdenur, participates this Wednesday (March 20), at 9:40 am, of the 47th National Meeting of State Tax Coordinators and Administrators (ENCAT), in Salvador, Bahia. The executive will give a lecture during the panel Combating Illegal Trade, which will also be attended by the representative of the Finance Secretariat of Minas Gerais, Marcos Rogério Baeta Pereira, and the representative of the Finance Secretariat of São Paulo, José Eduardo de Paula Saran.

In his lecture, Abdenur will show all the actions developed by ETCO to support the fight against illegal trade in the country since its foundation, in 2003. Member of the National Council to Combat Piracy and Intellectual Property Offenses (CNCP), ETCO is since 2009, the manager of the Cidade Livre de Pirataria Program. "Brazil has, in piracy, a serious challenge for development, a relatively new social and economic phenomenon, but one that grows exponentially, supported by criminal organizations", says Abdenur.

According to Eudaldo Almeida de Jesus, general coordinator of ENCAT, the choice of this approach was strategic for the current Brazilian scenario. "The definition of the theme occurred in the last ENCAT, since piracy and illegal trade violate the legislation, resulting in tax evasion and a consequent reduction in revenue for the States."

 

Against piracy, laws

The importance of the legal framework as a support for combating piracy and illegal trade is the subject of this article by ETCO President Roberto Abdenur.

Periods of accelerated consumption, such as Christmas shopping, generate year after year, comparative analyzes on the increase in interest in this or that product, growth or decrease in sales and prices, among others. Data, however, can never be measured, even though, unfortunately, it is responsible for a good part of the revenues. The sale of pirated products. The name itself says. It is pirate, it is illegal and therefore immeasurable.

Much is lost with piracy and counterfeiting. Pirated products do not only harm manufacturers, who have invested in research and technology to develop new articles. The consumer loses in product quality and warranty. It also loses security, as the strong link between piracy and organized crime has already been proven. The country loses in tax collection. It still loses in image. Brazil, where pirated products once circulated in even greater profusion, has been on the United States Commercial Representative's Priority Watch List (USTR) for years, a list of countries in which intellectual property rights are not considered adequately protected, which put us at risk of sanctions against our exports.

In 2004, a combination of factors allowed the creation of the National Council to Combat Piracy and Intellectual Property Offenses (CNCP), of the Ministry of Justice. In these eight years, the results have been palpable. Among them is the creation of the Cidade Livre de Pirataria Program, which is under the management of the Brazilian Institute of Ethics in Competition (ETCO). Through the program, municipalities take on the fight against piracy and develop actions in conjunction with the Police and Revenue (at the municipal, state and federal levels), in addition to specific municipal bodies and representatives of civil society. Cidade Livre is already established in Brasília, in five state capitals - São Paulo, Curitiba, Belo Horizonte, Rio de Janeiro and Vitória - in addition to the municipality of Osasco (SP). ETCO's goal, in line with the CNCP's commitment to FIFA, is to involve all the World Cup host cities in the program.

Today, Brazil is seen in a completely different way. Since 2011, it has ceased to appear on the USTR list, which, when disclosing the list, highlighted the work done by CNCP and the country's improvements in this area. In São Paulo alone, a pioneer municipality in the Cidade Livre de Pirataria program, 22 million illegal products were seized in 72 months, valued at R $ 2,5 billion. It was also thanks to this work that Procon of São Paulo obtained the necessary evidence to fine 11 shopping mall administrators for piracy, in the central region of the city.

Initiatives, actions and renewal of legislation show that Brazil is acting to resolve this problem. Law 12.663 (General Cup Law), signed by President Dilma Rousseff in June, allowed an agreement with the International Football Federation (FIFA). By law, anyone who falsifies or misuses any official FIFA or World Cup symbol can be sentenced to up to one year in prison, in addition to having to pay a fine. The penalty is the same for those who sell the product or store it.

The law goes further. It makes the so-called ambush marketing a crime, which is the improper association of a brand or symbol to the event. But this law will only be in effect until the end of 2014. Its implementation is of fundamental importance, but it is worth remembering that, regardless of the holding of major events in the country, the fight against piracy should not be restricted to specific needs. It is up to Brazilian lawmakers to adopt this principle for more comprehensive legislation. Encouraging the drafting of new laws will be a good side effect of the World Cup Law and may help the Cidade Livre de Piracy Program.

Another important aspect of piracy is the falsification of medicines. Brazil is also moving towards curbing this unspeakable crime. Approved in the Senate on June 13, PLS 162/2011 institutes the National Policy to Combat Piracy of Products Submitted to Health Surveillance. The project, which depends on approval by the Chamber of Deputies, focuses on integrating the various governmental actions to combat product piracy that must pass the screening of the National Health Surveillance Agency (Anvisa). It establishes the understanding that piracy is a crime and provides incentives for the training of specialized professionals and the education of producers, suppliers and consumers regarding their rights and duties.

For the actions to be effective, many bills are pending in Congress. Among them, PL No. 1778/2011, which is awaiting the appointment of rapporteur in the Finance and Taxation Committee (CFT) of the Chamber, provides for the suspension and cancellation of the effectiveness of registration in the National Register of Legal Persons of the Ministry of Finance - CNPJ / MF of establishments that distribute, purchase, sell, transport or stock products that have been the subject of counterfeiting, crimes against the brand, tax evasion, theft or theft.

PLS No. 464/2011 determines the suspension of business establishment activities involved in the falsification, adulteration or alteration of medicines, cosmetics and related products. PLS No. 368/2011, which amends Law No. 10.446 / 2002, provides for the Federal Police to have jurisdiction to investigate counterfeit drugs, as well as their sale through the internet, when they have interstate repercussions. That's what we need. Support the passage of laws and the joint action of various powers and bodies to create a siege to combat all forms of illegal trade.