Special Tax Reform Group created by ABES defines coordinators and initial work plan

For ABES, Brazil needs a Tax Reform to improve the precariousness of public finances, reduce Legal insecurity and the complexity of the current tax system. On the other hand, the current scenario is marked by the diversity of proposals pending in the National Congress, making it more difficult to understand the impacts of each of them in the ICT sector in particular and in all other economic sectors.

In view of this situation, ABES created a special group, as part of the Tax WG (Regulatory Committee), dedicated to studying the 3 proposals and their implications. The coordinators, who were defined in a meeting on August 4, are: Adriana Faria, from the associate Bentley; Carolina Archanjo, from Microsoft; and José Bublitz, from SND. One of the first actions will be to hire a consultancy to produce a study of the impact of the proposals on the IT market, knowing that the sector is vitally important for Brazilian growth, job creation and improving the country's competitiveness. 

In the evaluation of Dr. Manoel dos Santos, Legal Director of the association, Brazil needs a tax reform that guarantees balance, clarity and simplicity. “In our preliminary assessment, we found that the texts of PEC 45/2019 and PEC 110/2019, which are now being discussed in Congress, do not address any of these three requirements. The Federal Government's proposal, on the other hand, as presented, will increase the tax burden for the service sector. We understand that the Tax Reform should give equal treatment to the sectors, but it will not be able to treat equally the unequal ones and needs to consider the reality of each sector, the definition of the generating facts, the calculation bases and the operations covered by the rules ”.

The executive explains that in Brazil there are many taxes, with charges in the three spheres of the State - municipal, state and federal - and each of them requires the fulfillment of a multitude of accessory tax obligations that burden even the calculation and collection of taxes . “I repeat again that our tax system needs simplification, balance and clarity. In a simple tax calculation system, companies can produce more and better, with less costs and more development for the country ”, he concludes.

For more information about the performance of this group, contact Carolina Marzano, advisor to the committees, by e-mail: carol.marzano@abes.org.br.