State of São Paulo accepts losing ‘something’ to approve tax reform and end fiscal war, says secretary

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Samuel Kinoshita met with the parliamentary front for entrepreneurship in Brasília this Tuesday to discuss reform. Mayor Arthur Lira wants to vote on the text later this week. Finance Secretary of São Paulo, Samuel Kinoshita, at a meeting with parliamentarians in Brasília in collection, if that means the approval of the tax reform. For Kinoshita, approval of the reform could lead to the end of the so-called “fiscal war” between states. The secretary made the statements while participating in a meeting in Brasília with deputies and senators from the Parliamentary Front for Entrepreneurship (FPE). The text of the tax reform is in the Chamber of Deputies and the expectation of the President of the House, Arthur Lira (PP-AL), is to vote on the project later this week. “Governor Tarcísio [de Freitas] he’s saying: ‘I might even lose something in the short term, with the change in taxation on origin and destination, but I believe in the model that we end the tax war, transfer taxation to destination. This is going to be a very big booster for the Brazilian economy as a whole'”, said the secretary during the meeting. “São Paulo believes that, despite potentially going through some short-term loss, this principle of destiny makes sense. The tax war has been deleterious”, added Kinoshita. ‘Tax war’ By citing the “fiscal war”, Kinoshita is referring to the strategy adopted by several states to shelter companies and industries by reducing taxes in comparison with other states. Another point related to this “war” is the divergence between states regarding revenue from the sale of products – that is, whether the revenue should remain in the state of the company that sold the product or in the state of the person who bought the item. of virtual commerce, many companies headquartered in São Paulo sell products throughout the country. As a result, defining whether the tax is “at origin” or “at destination” impacts the state’s accounts. Haddad says that tax reform will end the ‘ tax war’

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