Consumers pay more taxes after the tax substitution
This article was translated by an automatic translation system, and was therefore not reviewed by people.
João Pedro Pitombo
The mechanism of substitution increased the tax revenue of the state, but who's paying more for certain commodities is the consumer. Considered an important tool to combat evasion, the ICMS (Tax on Circulation of Goods and Services) through the tax substitution has gained ground in the administrative machinery and represents a share of 22.87% of the collection of Bahia.
The change in the method of payment, however, has generated an increase in prices in certain sectors of the economy. According to businessmen who work with the trade in drugs and hot drinks sectors that pay through the ICMS tax substitution, the adoption of this model has been an increase of up to 20% in value of the product passed on to consumers. The burden, according to the business is generated to pay tax in advance of a profit margin estimated by the state, which is not always consistent with reality.
Roughly speaking, the tax substitution ICMS provides all stages of the movement of goods directly on the site of origin of the product, such as factories, farms and importing companies. In other steps, such as the wholesale and retail, companies are exempt from tax, which is already built into the purchase price. As a result, companies end up paying sales tax at purchase.
In July 2009, the State of Bahia raised R $ 806.7 million in taxes. Of these, about $ 184.5 million was collected through the tax substitution. A number that tends to grow with the signing of new agreements and protocols by the state, promoting partnership with other states and extending the range of products that pay GST. The tax lawyer Gandra Ives points out that while facilitating the collection of public funds, because the charge is due to fewer companies, the tax substitution affect the taxpayer who paid in advance. "It is a system of charging unfair and that can cause distortions.
Transfer - Second Sônia Izvo, a consultant company tax information IOB, to stipulate the amount of GST to be charged, the State should undertake studies and market research to determine the profit margin products. President of the Union of Retail Pharmaceuticals Bahia and director of pharmacy network Multimais, Joao Arthur considers an obstacle to payment of ICMS on purchase. "This method creates a reality that the greater the discount we give the price of the product, the more we pay ICMS. It's unfair, "he criticizes.
Source: A Tarde Online
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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