Alckmin defends tax reform and says the current model is “chaotic”

Vice President Geraldo Alckmin (PSB) defended this Tuesday (28) a tax reform that brings economic efficiency to the country. Representing President Luiz Inácio Lula da Silva, he spoke during the 24th March to Brasília in Defense of Municipalities, promoted by the National Confederation of Municipalities (CNM).

For Alckmin, the Brazilian tax model is “chaotic” and “unfair”, both in charging and in the distribution of resources, informed Agência Brasil. According to the vice-president, the disparity in distribution ranges from R$30 to almost R$9,000 per capita for municipalities.

“There is an awareness that our tax model is chaotic, it leads to very high judicialization. It has a very high cost to pay tax due to the tax complexity. He is unfair in the way he collects because he is excessively on top of consumption, ”he said. Alckmin compared it with the situation in the United States, where taxes on consumption are around 20%, while in Brazil they reach almost 50%.

“He [o modelo tributário] makes it difficult to export because it accumulates credit. It does not encourage investment. This is a reform that brings economic efficiency, which is what Brazil needs to grow stronger. We are confident and the path is dialogue. Mayors were one of the sectors of concern, but today there is an understanding that the federative issue will be resolved and the important thing is for the economy to grow stronger”, he added.

Tax reform and the federative pact are the central themes for mayors in this edition of the march, which brings together around 10,000 managers. The CNM defends the change in legislation so that the tribute stays in the city where consumption took place. Currently, the money goes to the municipality where the supplier company is headquartered.