Tax reform: Fiesp launches manifesto in favor of PEC – 7/5/2023 – Market

Fiesp launches this Thursday (6th) a manifesto in defense of the text of the tax reform that is being discussed in the Chamber of Deputies. In the document, the entity says that all economic and social sectors will gain if the country has a rational tax system.

“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. This means, in today’s money, R$ 1.2 trillion more circulating in the economy”, writes Fiesp.

Industrial entities such as Abipeças (Brazilian Association of the Auto Parts Industry), Abiplast (Brazilian Association of the Plastics Industry), Abimaq (Brazilian Association of the Machinery and Equipment Industry), Anfavea (National Association of Vehicle Manufacturers) sign the manifesto. Automotores) and Sindusfarma (Union of the Pharmaceutical Products Industry in the State of São Paulo).

“The time and resources wasted with tax bureaucracy can be invested in a more productive way. Companies opting for Simples will continue in this system. In the case of the service sector, these companies make up the vast majority”, writes the federation.

The text will be published in the largest communication vehicles in the country.

The president of the Chamber of Deputies, Arthur Lira, tries to start voting on the tax reform until this Thursday (6). Last weekend, the deputy began to measure the support of party benches for PEC 45 to find out how many votes each one is capable of delivering.

Read the manifesto in full:

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 gain if the country has a rational tax system —which 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 in progress in the Federal Chamber, with the expectation of its approval.

See some entities that signed the letter:

• Abicab (Brazilian Association of the Chocolate, Cocoa, Candy and Derivatives Industry)
• Abipeças (Brazilian Auto Parts Industry Association)
• Abimo (Brazilian Medical Devices Industry Association)
• Abilux (Brazilian Lighting Industry Association)
• Abimaq (Brazilian Machinery and Equipment Industry Association)
• Abiplast (Brazilian Plastic Industry Association)
• Abinee (Brazilian Electrical and Electronics Industry Association)
• Abifer (Brazilian Railway Industry Association)
• Abihpec (Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry)
• Abimetal (Brazilian Association of the Steel Processing Industry)
• Abit (Brazilian Textile and Apparel Industry Association)
• Abdib (Brazilian Association of Infrastructure and Base Industries)
• Abicalçados (Brazilian Association of Footwear Industries)
• Abre (Brazilian Packaging Association)
• Anfavea (National Association of Motor Vehicle Manufacturers)
• Aspacer (Paulista Association of Coating Ceramics)
• Brazil Steel Institute
• Iedi (Institute of Studies for Industrial Development)
• Sinbevidros (Union of the Industry of Improvement and Transformation of Flat Glass and Crystals of the State of São Paulo)
• Sindleite (Union of the Dairy Products Industry in the State of São Paulo)
• Simabesp (Union of the Pasta and Biscuits Industry in the State of São Paulo)
• Sinprocim (Union of the Cement Products Industry of the State of São Paulo)
• Sindusfarma (Union of the Pharmaceutical Products Industry in the State of São Paulo)
• Sinproquim (Union of the Industry of Chemicals for Industrial Purposes and Petrochemicals of the State of São Paulo)
• Sitivesp (Union of the Paint and Varnish Industry in the State of São Paulo)
• Sindicafé-SP (Coffee Industry Union of the State of São Paulo)
• Sindustrigo (Union of the Wheat Industry in the State of São Paulo)
• Sindipeças (National Union of the Component Industry for Motor Vehicles)
• National Union of the Steel Industry