Tag: taxation

Low growth of the Brazilian economy in 2014 may affect the agricultural industry

The low growth forecast for the Brazilian economy in 2014 may affect the agricultural industry, concluded several participants at the 13th Brazilian Agribusiness Congress, held in São Paulo.

“We had a period of accelerated productivity in the Lula government and a slowdown in Dilma's, but despite the change, there is a trend in the permanent tax burden,” explained Samuel Pessoa, a researcher at the Brazilian Institute of Economics (IBE).

Pessoa attributed the productive slowdown to low investment, and the forecast of growth analysts in the agribusiness sector was 0,6%, a percentage considered low.

Financial market analysts reduced Brazil's growth forecast for 10 for the 2014th consecutive week, which was 0,86%, against the 0,9% projected last week, the Central Bank reported today.

Despite the projection of minimum growth for agroindustry and a reduction in the country's Gross Domestic Product (GDP) this year, the vice president, Michel Temer, highlighted the "success" of the agricultural sector at the same congress.

“Agribusiness is one of the engines of the national economy and a good percentage of GDP, has an extraordinary prestige from the government through subsidized interest and incentives of the most varied”, pointed out Temer.

The vice president denied the criticisms that the credit lines are not reaching the sector and specified that the government makes "loans" with interest reduction and extension of the payment terms of the credit debts.

However, Pessoa stated that it is “common” that the impact on the level of productivity is associated with the dynamics of the international market, but in the case of Brazil, this premise does not fully apply because the economy is “closed” to the price of exports and imports .

After the 2008 crisis, Pessoa added, Brazil went through a period of high prices for raw materials, with a devaluation of the dollar and inflationary instability, factors that oppose a signaling of the dynamics of the international economy as the only one responsible for the “brake” for agribusiness.

According to the analyst, for an increase in productivity, it is necessary “a maturation of institutional public policies” and an increase in the exchange rate, which has fluctuated around R $ 2,25 for each US $ 1.

Without changes, Pessoa believes that the country will undergo a reconfiguration of the inflation scenario, which fluctuates close to the limit of the official target, of 6,5%, and by a “certain exchange control”.

"We have to do an urgent tax reform, Brazil does not have a favorable environment for business and we are by far the worst country in this item", he evaluated.

In this sense, the political analyst Christian Lohbauer, said that before reevaluating the economic policies for the sector, the challenge is to ensure that sectors outside the rural area are attentive and informed about the country's agricultural development.

“Agroindustry is an activity that generates exports, moves and is saving the country's economy”, defended Lohnauer at the event.

Regarding the criticisms of the tax burden and its interference in the agribusiness, Temer admitted the "difficulties" to implement a tax reform in Brazil.

“It is a delicate issue. Tax reform does not go ahead. So the government gave benefits to the country's productive sectors, making a kind of “sliced” reform, which will continue to happen ”, he stressed.

Source: Exame Online Portal

ETCO subscribes to the Tax System Simplification Program delivered to Dilma Rousseff

Under the coordination of the Commercial Association of São Paulo, the project gathers suggestions to adapt the legislation to the current demands of Brazil

The Brazilian Institute of Competition Ethics (ETCO) is one of the entities responsible for preparing the proposal for the Simplification and Rationalization Program for the Tax System delivered on May 6 to President Dilma Rousseff, during the inauguration ceremony of the new presidency of the Associação Comercial de São Paulo (ACSP) and the Federation of Trade Associations of the State of São Paulo (Facesp).

Coordinated by ACSP, the program is the result of the actions of a working group composed of ETCO, the Federation of Trade in Goods, Services and Tourism of the State of São Paulo (Fecomercio-SP) and the Union of Accounting Service Companies, Advisory, Expertise , Information and Research of the State of São Paulo (Sescon-SP).

The initiative comprises a set of rules to improve the Brazilian tax system, including a proposal for a constitutional amendment (PEC), a preliminary draft law (PLC) and a preliminary draft law (PL). The three measures are connected and serve to simplify and streamline processes, provide greater legal certainty, change some provisions of the National Tax Code and adapt the legislation to the current demands of Brazil.

This initiative was made in line with the intention, expressed by the President in her inauguration speech, to modernize the Brazilian tax system based on the pillars of simplification and rationalization.

For ETCO's Executive President, Roberto Abdenur, “the complexity of the Brazilian tax system is today one of the main motivators of tax evasion and informality that hamper the process of formalizing the economy and, ultimately, the country's development”. He also recalls the impact on the collection by governments of resources that should be used in more investments in infrastructure and services to the population. “Simplifying and rationalizing the Brazilian tax system is one of the most urgent initiatives in order to reach higher stages in the process of inserting Brazil in the world economic scenario”, says Abdenur.

Among the measures suggested in the PEC are to prohibit the collection of taxes before six months of the law that instituted or expanded them (currently the term is 90 days). In the draft law, there are actions such as the regulation of financing and refinancing of tax debts, amnesty restrictions, so that this type of benefit is granted only in cases of calamities and debts of small value, and the obligation of the Public Treasury to publish, in the previous year, the selection criteria for the annual Individual Income Tax return, among others.

 

Pedro Taques defends special tax criteria

Senator is rapporteur of the project at the Economic Affairs Committee

Public Relations

Cups: "We can combat competitive distortions resulting from tax evasion"

WRITING

Senator Pedro Taques (PDT) defended today (15), during a meeting with the Brazilian Institute of Competitive Ethics (ETCO), the regulation of article 146-A, of the Federal Constitution, which provides for special taxation criteria and should prevent competition imbalances.

“The regulation, among other things, will allow states and municipalities to prevent tax evasion companies from continuing to operate in the market. In this way, we will be able to combat competitive distortions resulting from tax evasion ”, said Taques, appointed rapporteur in the Senate Economic Affairs Committee (CAE) of the bill that defines the tax criteria.

As highlighted by ETCO's president, Roberto Abdneur, the measure is fundamental for the consolidation of a safe, healthy and ethical business environment.

"Among the many factors that cause unfair competition between companies in Brazil, is the use of tax evasions to reduce the cost of products in relation to companies that comply with their tax obligations and, thus, obtain illicit competitive advantages", he observed .

In practice, he explains that certain taxpayers may be taxed differently from others, with the aim of leveling the tax burden (fiscal function), which would otherwise be unequal, thereby preventing any possible competitive imbalance (extra-fiscal function).

Taques said he continues to debate the proposal for the format of his report, which should be presented at the CAE until June this year.

Source: Media News Portal
15.05.2013 | 17h46 - Updated on 15.05.2013 | 17:53 PM

ETCO supports Parliamentary Front for Exemption from Medicines

Source: Portal Fator Brasil

The institute's executive president, Roberto Abdenur, was at the launch event on April 17 (Thursday).

Attentive to taxation and piracy issues in the medication sector, the Brazilian Institute of Competitive Ethics (ETCO), through its executive president, Roberto Abdenur, participated on April 17 (Wednesday), in Brasília, in the launch of the Parliamentary Front for Exemption from Medicines. The event marks the beginning of the work of the front, which aims to discuss the reduction of taxes on medicines in the National Congress, an initiative of federal deputy Walter Ihoshi (PSD-SP).

The tax burden on medicines in Brazil is one of the highest on the planet. They are 33,9% of the final price, while the world average is 6,3%. This means that, for every R $ 10 paid in the purchase of medicines, R $ 3,39 refers to taxes.

For Abdenur, the creation of the Parliamentary Front for Exemption from Medicines meets the old claim of the sector. ? We understand that the high tax burden on medicines in Brazil is a complex issue, which will have an important forum for discussion and proposing solutions at the front.?

Profile - 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 work environment. business in 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.

Basic food tax in the country exceeds US and Japan value

Source: O Globo - 20/11/2012

Average charge here is 20%, against 8% charged to Americans

Roberta Scrivano

If the bill that details the tax bite has the presidential sanction on the invoice, the consumer will realize that he pays a lot of tribute not only to buy appliances and cars, but also to purchase basic products, such as rice and beans. On average, the load on basic food products in Brazil is 20%, against 8% in the United States and 6% in Japan.

Highways

Rice and beans are the items with the lowest tax in the basket, 17,24% each. The sugar rate is 32,33%. Specialists in taxes also recall that the average of 20% of the taxes of the basic basket takes into account the products in natura. In addition to them, it is necessary to pay for the preparation, such as stoves, pots, cutlery, which have an incidence of 28% or more of taxes, which would swallow part of the basket discount. According to Gilberto Amaral, president of the Brazilian Institute of Tax Planning (IBPT), the basic foodstuff tax reaches 31%:

- Nobody eats raw. The price of ready-made food is very high, especially when compared to other countries.

'Good for the consumer and the government'

Amaral stressed that the high tax rate and the absence of government compensation for basic services, such as school, health and safety, give relevance to the bill, approved last week in the Chamber, which proposes to explain the tax percentages to the taxpayer. IBPT, alongside the São Paulo Commercial Association (ACSP), led the development of the project in 2006.

- Having a rate of 17% or 20% on so-called basic necessities is a lot. It is also necessary to remember that the basic basket is destined mainly to the lower income classes, who also have their wages taxed - evaluated Marcel Solimeo, economist at ACSP.

The average Brazilian load is 35%. This means that, in a supermarket purchase of R $ 100, at least R $ 35 is to pay taxes, and the difference goes to pay off the products. Solimeo said that, with the implementation of the bill, the tax system will be more transparent and allow consumers to collect their rights from the State. Amaral said that putting taxes on the bill is good for the consumer, who now knows how much he pays, for the merchant, because it makes it possible to show the real price of the product, and for the government, for “expanding the exercise of democracy.”

ACSP has already developed a model of invoice with the field of taxes, to facilitate commercial establishments to adopt the new rules. IBPT, in turn, is developing software that provides merchants with rates for each of the 17 products and services in the Brazilian market.

Project approved that requires tax amount in the invoice

On the evening of November 13, the Chamber of Deputies approved Bill 1472/07 which provides for the discrimination of taxes on the invoice for products and services to the consumer. To take effect, the proposal is now under the sanction of President Dilma Rousseff.

The original text was presented in the Senate by Senator Renan Calheiros and stems from a popular initiative with 1,56 million signatures collected by the national campaign De Olho no Imposto, which brought together professionals from all sectors and was conducted by the São Paulo Commercial Association. The objective is to detail for the consumer the participation of taxes in the composition of the price of goods, regulating constitutional determination.

Congressman Guilherme Campos, who was the project's rapporteur for the Chamber's Finance and Taxation Commission, said that the measure will change the consumer's relationship with the tax in the country. “The feeling of paying the tax is awakening in the population. To know that, in every transaction, no matter how daily it is, you are paying tax: when you go to the supermarket, gas station, which will make your meal, you are paying, and a lot, tax. ”

If enacted, the future law will come into force six months after its publication. The invoice must show the value of the goods or services and, separately, the value in reais or the percentage relative to the total taxes. Failure to comply with the rule will subject the commercial establishment to the sanctions provided for in the Consumer Protection Code (Law 8.078 / 90), such as a fine, suspension of activity and revocation of the operating license. In addition, information on the tax burden may appear on a panel fixed in a visible place of the establishment or, furthermore, be disclosed by any other electronic or printed means.

ETCO's chief executive, Roberto Abdenur, in a comment on the matter, stressed "how important the project approved in Congress is, as it provides citizens with an objective perception of their effort as a taxpayer". He indicated that this “is a relevant step in the direction of greater and more positive interaction between the State and society, in line with what have been several initiatives, including the Government's, to promote greater transparency about actions and expenditures in public policies of various kinds. ”.

In the case of products manufactured with imported raw material that represents more than 20% of the sale price, the values ​​referring to the Import Tax, PIS / Pasep-Imports and Cofins-Imports, applicable to this raw material must be detailed. .

 

In all, nine taxes should be broken down in the invoices: Tax on Circulation of Goods and Services (ICMS), Tax on Services (ISS), Tax on Industrialized Products (IPI), Tax on Financial Operations (IOF), Income Tax ( IR), Social Contribution on Net Income (CSLL), PIS / Pasep, Contribution for Social Security Financing (Cofins) and Contribution for Intervention in the Economic Domain (Cide

"This is a particularly opportune initiative, since many people ignore the fact that indirect taxes are created - precisely those that most burden the low-income population - most of the tax burden in the country," says Abdenur.

Social security contribution

According to the bill, the invoice will also disclose the amount of the social security contribution for employees and employers whenever the payment of personnel constitutes an item of direct cost of the service or product provided to the consumer.

In the case of financial services, information on taxes should be placed in tables set at points of service, such as bank branches.

The IOF should be broken down only for financial products, as well as PIS and Cofins only for direct sales to consumers. (With information from Agência Câmara)

Tax amount paid on products and services will have to be broken down

Source: The State of São Paulo - 14/11/2012

Project that goes to the presidential sanction determines that the consumer is informed of the tax corresponding to each item that will acquire

 

DENISE MADUEÑO, EUGÊNIA LOPES - BRASILIA

The Brazilian consumer must be informed of the amount of taxes paid on the purchase of goods and services. A bill to that effect was approved yesterday in the plenary of the Chamber of Deputies, requiring the breakdown of the value of the product and taxes on the invoice. Presented to Congress in 2006 with more than 1 million signatures, the proposal has already been approved by the Senate and is now under President Dilma Rousseff's sanction to take effect.

Under the bill, the new rules will come into effect six months from now. The proposal foresees that nine taxes are levied globally on products and services.

A study by the Brazilian Institute of Tax Planning (IBPT) reveals that the tax burden on gasoline, for example, reaches 53%. Powder soap has a 41% tax, while soap and toothpaste reach 37%. When buying a shirt or dress, the consumer pays 35% of taxes, fees or contributions.

“The information will arouse in people the feeling of paying taxes. It will make visible what is being paid ”, said PSD leader, deputy Guilherme Campos (SP), rapporteur of the project at the Chamber's Finance and Taxation Commission. According to him, the invoice must bring the value of the goods or service and separately the value in reais or the percentage relative to the total taxes.

"The consumer will pay the full amount of the goods, but he will know from the note how much is tax," explained Campos. "Now, knowing how much they pay in taxes, the population can demand improvements in government services," said Deputy Cesar Colnago (PSDB-ES).

Panel. The following taxes should be computed: Tax on Circulation of Goods and Services (ICMS), Tax on Services (ISS), Tax on Industrialized Products (IPI), Tax on Financial Operations (IOF), Income Tax (IR), Social Contribution on Net Profit (CSLL), PIS / Pasep, Contribution for Social Security Financing (Cofins) and Contribution for Intervention in the Economic Domain (Cide).

In addition to the invoice, information on the tax burden on the product may appear on a panel fixed in a visible place of the establishment or even disclosed by any other electronic or printed means.

The government was against the proposal and tried to maneuver to try to approve another bill, which still needed to be voted on in the Senate. But, given the pressure from the deputies, the government leader in the Chamber, deputy Arlindo Chinaglia (PT-SP), agreed with the vote. He did, however, make a reservation that the project should have been preceded by a broad discussion about the Brazilian tax system.

House approves project that requires value of taxes on the invoice

Source: Folha de São Paulo - 14/11/2012

 

Proposal, approved against the will of the government, now goes to the sanction of Dilma Rousseff

Project emerged from 1,5 million signatures and foresees that nine taxes are broken down in the note

ERICH DECATDE - BRASILIA

Against the will of the government, the Chamber approved a bill yesterday that obliges traders to inform in the invoices the value of federal, state and municipal taxes that affect the price of goods or services.

As it has already been approved in the Senate, the proposal follows for the sanction of President Dilma Rousseff.

Government leaders took a stand against approving the project.

Arlindo Chinaglia (PT-SP), government leader in the Chamber, said that the approval of the proposal does not guarantee that there will be no vetoes from the president. "There is no commitment to presidential sanction," he said.

The project, which was stopped for five years in Congress, finds resistance in the Federal Revenue Service, as Sheet in a report on October 28.

“This project came from an organized civil society movement, spearheaded by trade associations, and collected more than 1,5 million signatures. These signatures were placed here in the National Congress and, as a matter of strategy, for a faster approval ”, said PSD leader Guilherme Campos (SP).

According to the proposal, authored by Senator Renan Calheiros (PMDB-AL), the information on the values ​​of the taxes must appear on a panel posted in a visible place of the establishment.

In all, nine taxes should be itemized in the invoices: ICMS, ISS, IPI, IOF, IR, CSLL, PIS / Pasep, Cofins and Cide.

According to tax lawyer Ives Gandra Martins, what the project proposes is to regulate what has been in the Constitution since 1988.