The Carrro Livre and Doce Venom actions assume the character of lobbying for advantages in the tax changes in progress
Changing the way taxes are collected, seeking to untie the tangle of laws, norms and articles that have plagued Brazilian companies and citizens for years is a subject debated in Congress and by society. However, the clash of federative interests between the Union, states and municipalities and the conflicts between different economic sectors over who will receive less and who will pay more, has always been an obstacle for projects to move forward.
But the approval by the Chamber of PEC 45, voted last week by the Senate’s CCJ, with changes to the original text that will require a new vote by the deputies, seems to indicate that there will finally be changes in the collection.
However, the subject still promises controversy. It is not known what will actually be approved. Lobbies, including politicians and businesspeople, continue to act behind the scenes in Congress, seeking to change points in PEC 45 that bring advantages whether to federal entities or economic sectors. Recently, the main entities representing the food chain launched the Free Cart campaign: for a tax reform that respects your freedom of choice.
Created by the Zeno Group agency, the insertions on social networks aim to clarify the population about the importance of changing the collection system, which currently penalizes low-income consumers due to the system’s regressive nature and does not contribute to the exercise of citizenship. , as it does not make clear the information about the portion of the price that is intended for tax collection, says the campaign launch statement, signed by Abia (Brazilian Food Industry Association), Abir (Brazilian Association of Soft Drinks and Drinks Industries). Non-Alcoholic), Abimapi (Brazilian Association of the Biscuit, Pasta and Industrialized Bread & Cake Industries) and Abicab (Brazilian Association of the Chocolate, Peanut and Candy Industry).
In the text, the entities emphasize the importance of the food production chain, which processes 58% of all agricultural production in the country and represents the largest sector of the Brazilian processing industry. It is also the biggest generator of jobs, with 1.9 million direct jobs, in more than 38 thousand companies. If we take into account the entire chain, from the countryside to retail, we are talking about a sector that generates 19.5 million jobs in total.
The note also emphasizes that it is important to take into account that the increase in taxation for the segment may not be effective, and may also have adverse effects on the economy and tax collection, such as the reduction in the gross value of production, the decrease in value added to the economy (GDP), the reduction in jobs and wages, and the decrease in the total collection of direct taxes on production.
Read the full article in the November 13, 2023 edition