Post by firoj1313 on Feb 11, 2024 23:35:11 GMT -5
The proposals of the Growth Acceleration Program (PAC) in the tax area generated more complaints than praise for the federal government. Experts interviewed by Consultor Jurídica magazine point out that the incentives offered to specific sectors of the economy do not remotely address the main tax problem, which is the tax burden. Experts also believe that the exemption, which should reach R$6.6 billion in 2007, will not be enough to achieve the expected growth target. “The forecast for tax relief was much lower than expected for the country's growth”, says tax expert Roberto Pasqualin . He regrets that so many other sectors of the economy are not even mentioned in the program. However, he emphasizes that those who benefit will be able to make more investments, increase productivity and create more jobs.
For Pasqualin, the promise of tax reform contained in the PAC is imprecise and without content. According to him, before talking about tax relief, it is necessary to think about restructuring the Brazilian tax system. “Today, for companies, the tax area is hell. Both due to the cost and the numerous rules they have Finland Email List to comply with,” he says. Tax specialist Raul Haidar follows the same line. “The package is shy”, he criticizes. For him,it will be difficult to achieve 5% growth in the economy given the incentives offered to sectors that are not even on the market yet, such as Digital TV. Haidar notes that Brazilian companies do not invest because the tax burden is very high, equivalent to 40% of GDP. “Brazil needs tax reform and fiscal reform”, he concludes. Igor Mauler Santiago criticizes the political position of the team that set up the.
The federal government developed the entire program without consulting the governors. However, the incentive bill will be divided between the Union, states and municipalities. For the tax expert, the initiative's bonus falls on the federal government and the states pay a large part of the expenses. “Only President Lula will win politically”, he states. The PAC concentrates tax exemption on Income Tax, IPI (Taxes on Industrialized Products), PIS (Social Incentive Program) and Cofins (Contribution for the Financing of Social Security). IR and IPI are collected by the federal government, to later be redistributed with other State entities. Around 47% of the amount collected by the Union from these two taxes is directed to states and municipalities.
For Pasqualin, the promise of tax reform contained in the PAC is imprecise and without content. According to him, before talking about tax relief, it is necessary to think about restructuring the Brazilian tax system. “Today, for companies, the tax area is hell. Both due to the cost and the numerous rules they have Finland Email List to comply with,” he says. Tax specialist Raul Haidar follows the same line. “The package is shy”, he criticizes. For him,it will be difficult to achieve 5% growth in the economy given the incentives offered to sectors that are not even on the market yet, such as Digital TV. Haidar notes that Brazilian companies do not invest because the tax burden is very high, equivalent to 40% of GDP. “Brazil needs tax reform and fiscal reform”, he concludes. Igor Mauler Santiago criticizes the political position of the team that set up the.
The federal government developed the entire program without consulting the governors. However, the incentive bill will be divided between the Union, states and municipalities. For the tax expert, the initiative's bonus falls on the federal government and the states pay a large part of the expenses. “Only President Lula will win politically”, he states. The PAC concentrates tax exemption on Income Tax, IPI (Taxes on Industrialized Products), PIS (Social Incentive Program) and Cofins (Contribution for the Financing of Social Security). IR and IPI are collected by the federal government, to later be redistributed with other State entities. Around 47% of the amount collected by the Union from these two taxes is directed to states and municipalities.