Fiesp publishes manifesto in defense of tax reform

The Federation of Industries of the State of São Paulo (Fiesp) released this Wednesday (5) a manifesto in defense of the tax reform. The text “Tax Reform Now!” it is also signed by entities from various industry sectors. “All economic and social sectors will gain if the country has a rational tax system, which has ceased to exist many years ago”, says the document.

Among the entities that signed the text are the Brazilian Machinery and Equipment Industry Association (Abimaq), the National Association of Automotive Vehicle Manufacturers (Anfavea); the Brazilian Plastic Industry Association (Abiplast); among others.

“We strongly support this cause because it is good and necessary for the country. The approval of the tax reform of taxes on consumption, in a first stage, has the potential to increase the Gross Domestic Product (GDP) between 12% and 20% in up to 15 years, according to available studies. This means, in today’s money, R$ 1.2 trillion more circulating in the economy”, they defend.

The president of the Chamber of Deputies, Arthur Lira (PP-AL), hopes to vote on the tax reform this Thursday (6). Parliamentarians, governors and mayors are still negotiating changes to the text.

See the full manifesto released by Fiesp:

“Tax Reform Now!

Let’s make Brazil the country that everyone wants

Brazil is in a hurry. It needs more investments, more innovation, less bureaucracy, being more competitive, more efficient, creating better jobs to develop and guarantee the well-being of all. Such objectives require a comprehensive, homogeneous and modern tax reform.

The way forward, in accordance with the best international practices, recommends alignment with the 90% of countries in the world that adopt the value added tax for all sectors, exempting exports and investments, in addition to valuing production, trade and the services.

We strongly support this cause because it is good and necessary for the country. The approval of the tax reform of taxes on consumption, in a first stage, has the potential to increase the Gross Domestic Product (GDP) by 12% to 20% in up to 15 years, according to available studies. That means, in today’s money, R$ 1.2 trillion more circulating in the economy.

A more dynamic, competitive and rich Brazil will emerge, encouraging growth leveraged by the end of cascading taxation and other practices harmful to development.

All economic and social sectors will benefit if the country has a rational tax system — something that many years ago ceased to exist. Time and resources wasted on tax bureaucracy can be invested more productively.

Companies opting for Simples will continue using this system. In the case of the service sector, these companies make up the vast majority.

To overcome the main challenges and have a prosperous, fair and solidary country, Brazilians need to embrace the cause that belongs to everyone.

No more missing opportunities! Let’s make Brazil the country that everyone wants!

The entities undersigned represent activities that generate millions of jobs and account for most of the tax collection in the country. They express their support for the tax reform under way in the Federal Chamber, with the expectation of its approval”. (Check the list of entities here).