ARTICLE – ACSP

President of the Commercial Association of São Paulo (ACSP)

Created as a tool for social inclusion and a solution to simplify the bureaucratic processes of Brazilian micro and small entrepreneurs – who represent approximately 30% of the Country’s GDP and employ more than 50% of the workforce –, the Simples Nacional tax , in its 19 years of regime, unified taxes, reduced bureaucracy, and made the lives of Brazilian entrepreneurs easier. A promising project, which until now has worked very well. But, when it comes to Brazil, what works and brings positive results soon ends up being revoked.

There are 24 million companies under the Simples Nacional tax, representing 95% of Brazilian companies within this regime, 14 million of which are MEIs.
This discussion about the reformulation and even possible extinction of the Simples Nacional tax has caused a lot of legal uncertainty and concern between entrepreneurs. After all, there will be many negative impacts arising from the high tax burden that includes eight taxes – something unimaginable and inconceivable for small entrepreneurs, who see this change as the destruction of the regime.

Debureaucratizing the Simples Nacional tax through revenue categories would be a fundamental mechanism to adapt micro and small entrepreneurs to the changes of the Tax Reform. Brazil’s prosperity occurs through productivity and sustainable growth.

Source: Eletrolar News Ed. 167