ECONOMIC AREA, BUSINESS AND LAW – REFLECTIONS AND IMPACTS
WHAT YOU DIDN’T SEE IN THE TAX REFORM
POSITIVE AND NEGATIVE FACTS
Tax reform has been the subject of intense debate, especially among economists and tax experts, who highlight potential benefits such as simplification and cost reduction for companies, as well as a better business environment and attraction of investment. However, it is important to analyze the issue from a broader perspective, considering aspects that are often overlooked.
Instead of detailing all the points discussed, this article seeks to highlight the impacts not mentioned by analysts and experts. For this purpose, we raise a few questions:
a) While the simplification of the Tax System is advocated, little attention is paid to the actual benefits of this simplification.
What will be the real gain from simplifying the tax system?
b) Will household consumption and investment really grow as the advocates of the reform claim?
c) Is it correct to say that demand for goods will outstrip demand for services, resulting in a significant increase in GDP?
d) Will the domestic industry be able to meet the increase in consumption, even in view of its current fragility?
e) Will complex production chains make the national industry more competitive in the face of the proposed changes?
f) What will be the costs of adapting and parameterizing systems due to digitization and the need for digital control of operations?
g) What will be the costs and challenges associated with digitizing tax obligations, such as Sped fiscal, Sped accounting, ECF, DCTF, DIRF, among others?
i) How many hours of work will it take to operate the new tax system?
j) Will the reform really reduce the cost of tax payments in Brazil?
k) How will consumer taxation be implemented, especially considering the prominence and explicitness of VAT on various services?
m) How will VAT be implemented in Brazil, especially in relation to transparency in the collection of professional services?
n) How will dual VAT be charged on indirect imports?
In addition to these questions, we highlight some points for debate, based on the foundations adopted by the tax reform:
1 – Taxation in the state of destination of the goods violates the federal principle by removing the jurisdiction to legislate on ICMS and ISS from the states and municipalities.
2 – The switch to financial credit from non-cumulative VAT will have significant implications for companies’ costs and the structuring of their processes.
3 – The mismatch between state VAT and federal taxes can lead to inconsistencies and uncertainties in the tax system.
4 – The need to clarify, use and implement the new constitutional tax concepts, as well as the approval of complementary laws to anchor the tax reform, are the biggest challenges that must be faced by the legislative branch.
5 – It is important to analyze the impacts of consumption taxation on income taxation and ensure a smooth transition between tax regimes.
In short, it is essential to broaden the debate on tax reform, considering not only the positive aspects highlighted, but also the challenges and potential impacts that have not been discussed. Only in this way will we be able to promote a more comprehensive and informed discussion about the future of the Brazilian tax system.
