Industry representatives call for limit to exemptions

In a public hearing at the Constitution and Justice Commission (CCJ) this Thursday (24), industry representatives pointed out that if the list of exemptions grows, there will be an increase in the burden for other sectors. The industrial sector is concerned about the number of exemptions and differentiated rates provided for in the text of the tax reform under analysis in the Senate (PEC) 45/2019.

According to the chief economist of the Federation of Industries of the State of São Paulo (Fiesp), Igor Rocha, it is necessary to limit the exceptions and present a simplification for the Brazilian economy.

“A good tax reform foresees the smallest possible number of exceptions. Tax reform is very important. It brings rationality, simplification and efficiency to the Brazilian economy, but it is always necessary to contain exceptions so that the transformation industry does not continue to be penalized”, he said.

The PEC creates differentiated regimes in relation to the general rules, providing, for example, a zero rate or a 60% reduction for sectors such as health, education, medical devices, public transport and agricultural products. During the debate, representatives of some sectors defended differentiated regimes and reduced rates of the Value Added Tax, which is created with the PEC.

For Alessandra Brandão, legal consultant for the National Transport Confederation (CNT), civil aviation should be included in the differentiated rate provided for the passenger transport sector. The modal is the only one among transport that must pay the “full rate” with an estimated load of 25%. She also asked for a special regime for the transport of cargo.

“We want air transport to be treated equally. Cargo transport was also not contemplated. If freight increases, prices increase”, pointed out Alessandra.

Rapporteur of the proposal, Senator Eduardo Braga (MDB-AM) pondered that Brazilian society should evaluate the cost-benefit of these different regimes. “Is Brazilian society determined to pay the cost-effectiveness of a certain tax exception regime? If the Brazilian people decide to pay, democracy will do so”, said Braga.

With information from the Senate Agency