Tax reform still displeases trade and services – 06/07/2023 – What tax is this

While the industrial sector assesses the new guidelines for tax reform presented by the Chamber of Deputies as positive, the commerce and services sectors remain resistant to the proposal.

The industry believes that the reform will bring growth and gains to all sectors. Trade and services, on the other hand, claim that the proposal aims to relieve the manufacture of goods to the detriment of services, which currently have a lower burden.

For the president of CNI (National Confederation of Industry), Robson Andrade, the new tax model has the capacity to significantly accelerate economic growth and generate more jobs and income.

“This new model eliminates several distortions, simplifies and gives more transparency to taxation on consumption”, says the president of CNI.

For Márcio Olívio Fernandes da Costa, vice president of FecomercioSP, the guidelines bring practically nothing new in relation to what had already been discussed since 2019 and do not meet the three main demands of the sector: reduction of the tax burden, simplification of ancillary obligations and increased legal certainty.

“Our complaints have not changed. The business community [do setor] feels harmed in the manner in which this is being discussed”, says Costa.

Sergio Villanova Vasconcelos, a lawyer at the Buttini Moraes office, believes that the text of the new proposal (replacing PEC 45) should outline the general lines of the new tax system, leaving important issues to be defined later, such as products and sectors with favored taxation.

“A lot will remain for the complementary law. After the approval of the PEC we will still have a very long way to go for the construction of the new tax system”, he says.

For the tax specialist, the improvement of the tax system will also depend on the definition of infraconstitutional legislation and on the successful application of these laws.

“A PEC is not enough to solve everything. Many of our problems are due to the application of legislation. It is not just a problem of law.”

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