19/11/2009

TAXES ON EXPORTS

Industries ask for revocation of taxes on exports.

Roberto Giannetti, Director of International Relations and Foreign Trade Fiesp (Federation of Industries of Sao Paulo State), who advocates the abolition of taxes on exporters, said that “they (the tax) prevent the creation of new jobs and increase in the companies" profits, and impact negatively on the competitiveness of Brazilian manufactured products.


According to the director, “the country has a serious fiscal voracity, with ceiling ratio of exports to around 42.5%, whereas the average rate of 5% Tax (IPI), PIS 9.25% Cofins and 18% of Tax on the Circulation of Goods and Services (ICMS). The Constitution itself guarantees no incidence of IPI and ICMS on exports”. "There is a tax credit of duty on exports, but not really". “Taxing exports is taxing its own economic growth”, said Giannetti.


Even the World Trade Organization (WTO) set the global standard as not to export indirect taxes, also called consumption taxes.


The law of the WTO allows the exemption or refund of taxes on goods and services exported and provides that they are paid by consumers in countries of destination.


Brazil is ten points above the global average tributary tax rates when such tributary rates are compared with Gross Domestic Product (GDP).


Professor of Tax Law at the University of São Paulo (USP), Torres said that "the incidence of taxes is a serious deficiency of the legal system and a model inhibitor of economic growth and development of the country".