2023-09-05 17:13:05
Economist Felipe Salto showed reservations regarding the proposal approved in the Chamber of Deputies and declared that the VAT rate could reach 33%
Waldemir Barreto/Agência Senado Felipe Salto is former Secretary of Finance and Planning for the State of São Paulo
During event from Federation of Trade in Goods, Services and Tourism of the State of São Paulo (Fecomercio-SP), this Monday, 4th, the economist Philip Jumpwho is a former Secretary of Finance and Planning of the State, and Jorge Rachidtax auditor and former secretary of the Federal Revenue, demonstrated reservations with the text of the tax reform approved by the Chamber of Deputies. For Salto, none of the proposed targets should be fully achieved: “You have to migrate [a tributação] for destiny, it does not have to be cumulative, it has to end the tax war, it has to reduce the multiplicity of rates that exist today in the ICMS and it has to prohibit the edition of new tax incentives, making a kind of organized exit from the current volume of incentives, which probably already exceeds R$ 210 billion in the scope of ICMS. The problem is that this is not going to happen, these five points are not going to happen, ”he said.
The economist reckons that the Value Added Tax (IVA), a new tax that unifies taxes on consumption of goods and services, could reach 33% and criticized the creation of the Federal Council, which will distribute the funds collected among the States: “The federative pact is an ironclad clause. And the Federative Council, being placed by an Amendment to the Constitution, violates the federative pact. Because it is an institution that will standardize, regulate, collect, share resources and return credit to taxpayers. I joke that all that remains is to make the flag of the Federative Council and compose the anthem, so that we have a more important body than any state governor”.
Former Inland Revenue Secretary Jorge Rachid assesses that many points under discussion should not be treated as constitutional changes and also criticized the reform: “The tax system has to be practical and objective, it is cool and very cool to be able to say that in my country there is a single tax or, in this case, two tributes. But that depends a lot on the culture of the country, it depends a lot on the economic structure of the country itself. In theory, VAT would be wonderful, but VAT has serious problems in the European Union. There is tax evasion in the European Union. It’s not going to solve all the problems.”
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