Tax reform reindustrializes the country, say entities – 12/15/2023 – Market

Entities representing Brazilian industry highlighted the positive effects of the tax reform, approved by the Chamber this Friday (15), for the sector.

The president of the CNI (National Confederation of Industry), Ricardo Alban, said that the change in the tax system is a great achievement for the entire country and had been expected for more than 30 years.

“Brazil will grow more, with more industry. It’s an excellent change, especially at this time when the country is discussing how to promote the neo-industrialization of the Brazilian economy”, says Alban.

For Fiesp (Federation of Industries of the State of São Paulo), the country will have a more modern, transparent tax system aligned with best international practices, simplifying the lives of those who generate jobs and income in Brazil.

“Two points in the approved text deserve to be highlighted: the lock that prevents the increase in the tax burden and the provision for reviewing exceptions every five years. The approval of the reform is a milestone and a victory for the entire Brazilian society.”

Firjan (Federation of Industries of Rio de Janeiro) says that the tax reform is a historic milestone for the country.

“From now on we can move towards a more competitive, prosperous, economically and socially fair Brazil. It could have been better, but the approved measure is much better than the complex tax system in force today”, said the president of Firjan, Eduardo Eugenio Gouvêa Vieira.

According to Vieira, from now on society will be more attentive to public expenses, as the taxes to finance them will be more transparent.

FecomercioSP (Federation of Commerce of Goods, Services and Tourism of the State of São Paulo) said that the reform will bring uncertainty to the country’s economy from 2024 onwards.

“Despite being approved, the new legislation is not yet ready. More than that, it does not provide guarantees that it will be possible to achieve the main objective of a tax reform sought for at least three decades: the simplification of the Brazilian tax collection structure”, says the entity.

“The consequence of this scenario will be an immediate increase in judicialization, as the reform increases legal uncertainty regarding tax procedures for companies and taxpayers.”