Beauty industry association cobra tax stabilization

The simplification of taxes discussed in the federal Government should not take effect for the industry before the stabilization of accessory obligations, regarding bureaucratic environment behind the payment of taxes, says the Abihpec (Brazilian Association of the industry of personal hygiene, perfumery and cosmetics). For the entity, the first step is the stabilization of the tax payment systems.
"We are far from the tax simplification," says João Carlos Basílio, President of Abihpec. "The first step is to stabilize the system, and then start to simplify it. It is not possible to simplify and at the same time promote changes [of the ancillary obligations] at a fantastic speed, "says João Carlos Basílio, President of Abihpec.
According to a survey by the World Bank, Brazilian companies spend an average of 2,038 hours a year in preparation and payment of taxes-the highest global level. In France the entrepreneurs engaged in 139 hours per year to the subject and, in the United States, 175 hours.
In 2016, Abihpec calculates have sent his associates reported 600 informing about changes in tax liabilities and tax written procedures. "We know that a good part of the notifications could not be known by the entrepreneurs, because they were almost two notifications to every day of the year," says Basil.
In the first two months of 2017, issued releases by Abihpec exceed 70, surpassing the same period in 2016. No ancillary obligations can result in high losses for companies, through fines or temporary cessation of activities, under risk of compromise the operation.
Supported in the World Bank study, Finance Minister Henrique Meirelles announced recently that the internal revenue service is working on a program to decrease the tax bureaucracy, having as a goal to reduce the time to foreclose on companies with public debts to less than 600 hours a year.
To fulfill the promise, the Rapporteur of the Committee on tax reform in the Chamber of Deputies, Luiz Carlos Hauly (PSDB-PR), advocates the creation of value-added tax (VAT) and the merger of PIS (Social integration program) and COFINS (contribution to the Social security financing). The VAT would integrate the physical state and would replace the GST (tax on circulation of goods and services) and the ISS (service tax), making it a single consumption tax.
"The project sounds like music to my ears, but how to unify the distortions that each State promotes? We need to engage more with the reality of the delicate situation that the country is living on tax form, "says Basil. "The industry needs to breathe, absorb the tax changes for each State. For this it is necessary to the stabilization of the tax payment procedures. "