01/04/2013
Armando Monteiro: current tax system threatens the achievements Simple Autor: Agência Senado
Senator Armando Monteiro (PTB-PE) stated on Wednesday (27) that the dysfunctions of the current tax system in Brazil threaten the achievements of the National Simple, special tax regime applicable to micro and small businesses that enables payment of various taxes by a single rate.
The senator explained that the abusive use of tax replacement ICMS scheme whereby responsibility for the GST payable in respect of the transactions or services is attributed to another contributor, nullifies the benefits provided by Simple.
- The replacement of anticipation and recollection of taxes only disadvantage the expansion of small businesses. This is because it reduces the working capital of enterprises, jobs reaches inhibits investment, confidence and competition, and encourage, against informality - said.
For the senator, the use of ICMS tax substitution should be restricted to situations sprayed marketing in sectors where there is a high concentration of manufacturers or distributors. He cited a survey by Sebrae that reveals the damage that the use of tax replacement system because the choosers Simple.
- Between 2008 and 2011, the total payment of tax replacement within small companies reached $ 4 billion, a growth - gasp - 75%. Thus, the tax burden on small entrepreneurs has grown significantly since the rate of payment by the ICMS tax substitution is significantly higher than the rate of the single - explained.
Armando Monteiro noted that in some states, the difference between the rate provided for in Simple and being charged for small businesses through tax replacement reaches 220%. The senator pointed out the need to be a reform of VAT aimed at mitigating the harmful effects of tax replacement mechanism on micro and small enterprises.
- The country needs to move forward in improving the tax environment, and Simple is a milestone in that process. We can not give up their gains, under penalty of being penalized and stifling entrepreneurial force in the country, which rises in small businesses - said.
From the newsroom
Source: Agency Senate
