Tax justice in Brazil requires equality first; read the article

Measures are needed to mitigate the cruel tax gap between favored companies and their competitors

Brazil has 21 million national businesses: of this total, 99% opt for simplified and privileged tax regimes, aimed at micro and small businesses. One of them is the Simple national team, with 7 million. Another 14 million are individual micro-entrepreneurs (MEI).

The scenario, therefore, is that of a company with tax treatment benefit for every ten inhabitants. This advantage would be commendable if this business segment did not exercise predatory competition against those who do not fall under the favored regime and who bear the entire tax and social security burden in their operations. This breaks a golden rule of taxation: equality.

Measures are needed to mitigate the cruel tax gap between favored companies and their competitors. The providential solution lies in the tax relief for businesses not covered by Simples Nacional, with the inclusion of this entire important segment of the economy in law (PL) 334/23, thus allowing a wage relief also for tourism and hospitality businesses. outdoor. home food sector, taxed on the presumed profit.

The proposal, however, was vetoed by Palácio do Planalto, as there is no compensation for workers. You don’t agree, because the hotel, bar and restaurant sector is one of the most employing sectors in Brazil: there are 2 million companies and 6 million employees. In the State of Sao Paulo alone there are 460 thousand factories and 700 thousand jobs. In other words, the federal government’s justification is somewhat contradictory – to be elegant.

Businesses operating within the maximum revenue limit of the Simples Nacional scheme currently bear a total tax burden of 14.3% – including the employer’s social security contribution (CPP). With the reform, the total payment levied on the operation of companies included in the deemed profit category will be approximately 19.5%, of which 14.5% will be allocated to value added tax (VAT) and other taxes , plus 5% of the CPP measured on gross and high revenue, given that the tourism segment employs a very large number of workers.

In this sense, the sector proposes, as plausible, an overall taxation of 15.5% on gross revenue in order to reduce the differential compared to companies operating under the Simples Nacional regime, thus guaranteeing more competitive balance and, above all, encouraging, done, the tax justice that Brazil so desperately needs.

Sylvio Lazzarini is director of Institutional Relations at Fhoresp and an entrepreneur in the service sector. Clóvis Panzarini is an economist specialized in Public Finance and Taxation and was coordinator of the Tax Administration of the Government of the State of São Paulo.

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.