Tereza Cruvinel: 'the upstairs is already starting to creak'

"The fiscal measures that will also affect the upper strata of society – after the measures that only affected workers – were barely announced when the whining began," says columnist Tereza Cruvinel of 247; she is referring to the protest by the National Confederation of Industry, led by Robson Andrade, against the end of payroll tax exemptions; in a statement, the entity describes the payroll tax exemption as a setback, which once again should result in a shrinking of the industry's share of GDP; "imagine the uproar if the government actually has the courage to create a tax on large fortunes," says Tereza.

February 27, 2015, 19:16 PMUpdated July 11, 2018, 16:39 pm

"The fiscal measures that will also affect the upper strata of society – after the measures that only affected workers – were barely announced when the whining began," says columnist Tereza Cruvinel of 247; she refers to the protest by the National Confederation of Industry, led by Robson Andrade, against the end of payroll tax exemptions; in a statement, the entity describes the payroll tax exemption as a step backward, which once again should result in a shrinking of the industry's share of GDP; "imagine the uproar if the government actually has the courage to create a tax on large fortunes," says Tereza (Photo: Leonardo Attuch)

By Teresa Cruvinel

No sooner had the fiscal measures that will also affect the upper strata of society been announced – following measures that only affected workers – than the complaints began.

The National Confederation of Industry (CNI) is warning, in a statement, that it “received with extreme concern the announcement of the change in the payroll tax exemption system,” the subject of Provisional Measure 669 issued by the government this Friday. The CNI alleges that the industry, already facing a competitiveness crisis, will suffer a strong impact from the measure, further reducing its capacity to meet the challenges of global competition and affecting even the level of employment in the sector. The Provisional Measure establishes that, starting in June, companies that pay 2% of their revenue to Social Security will now pay 4,5%. Those that pay 1% will have to pay 2,5%.

While acknowledging the importance of fiscal adjustment, the organization considers the payroll tax exemption a step backward, which will once again result in a shrinking of the industry's share of GDP.

"The unit cost of labor in Brazil has grown significantly over the last 10 years, exceeding that of countries with which we compete directly. Added to this cost is the high burden of social security contributions, which surpass those of our competitors. The necessary fiscal adjustment must be accompanied by an agenda that promotes competitiveness and improves the business environment," the statement concludes.

Imagine the uproar if the government actually has the courage to create a tax on large fortunes.