Clipping of news on Brazilian Culture, Law and Citizenship
25/10/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Form current collection makes the real tax is higher than the tax rate indicated on account
SAO PAULO - A change in the form of charge Tax on Circulation of Goods and Services (ICMS) levied on the electricity could reduce by about 1.2% the amount paid for the bill. The calculation is the Institute Illuminates Brazil, which advocates change in criteria for collecting the tax.
Currently, the VAT levied on electricity is calculated by a criterion called taxation inside, where the tax base includes the tax itself. This makes the actual tax is higher than the tax rate indicated on the bill. For example, a 25% rate of GST represents a real tax of 33.3%. An aliquot of 30% corresponds to a real tax of 42.8%.
"We want to end this thing to charge GST on the inside. It makes sense that the base on which the tax is charged takes into account the tax itself. It is a lack of transparency and total is incorrect, from our point of view, "says the institute's president, Claudio Sales.
He recognizes that change is complex because, as the ICMS is a state tax, any change involves the relationship between the states and the Union "But with political will, it can be." According to Sales, the reduction of taxes on electricity favors the economy, including the states, because the reduction becomes greater consumption of other products and services, which also focus on taxes.
For tax specialist Ives Gandra Martins, the change in charging the GST would be ideal, but for that there should be changes to the tax code. "Then the discussion becomes more complicated, because it would take away revenue from the states," he argues. He points out that the shape of the current billing ICMS has existed since the creation of the tax in 1967, and not only in the bill, but on all products.
"It's very systematic ICMS since its launch. In light bill draws more attention for being a tax higher, it represents one third of the value of the account, which is considerable, "he explains. According to Martins, the form of tax collection has been challenged in court, but there was always an understanding that it is correct.
According to the National Electric Energy Agency (Aneel), the ICMS represents 21.7% of the total cost of energy. Other costs are divided as follows: generation (32.4%), transmission (6.4%), distribution (24.1%), industry charges (10.2%) and federal taxes (5.2%) .
Source: The Day Online
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This article was translated by an automatic translation system, and was therefore not reviewed by people.