Paraná is "the place" for micro and small businesses.

Paraná News Agency - Paraná is the best state for the establishment and operation of micro and small businesses. This is according to a survey conducted by the National Confederation of Industry (CNI) and the Brazilian Service for Support to Micro and Small Businesses (Sebrae), which assessed the tax burden for the sector in the country.

According to the study, Paraná is the only state with a tax rate lower than that of the Simples Nacional (Simplified National Tax System). The national average tax rate is 5,5%, while in Paraná the average tax collected is 4,6% of the company's revenue. The Simples Nacional encompasses seven taxes, including the Tax on the Circulation of Goods and Services (ICMS), the Tax on Services (ISS), and the Cofins (Social Security Financing Contribution).

The tax policy adopted in Paraná benefits 98% of the state's companies. Today, approximately 200 micro-enterprises are exempt from paying state taxes. "We have been concerned not only with large investments, but also with smaller businesses, giving opportunities for companies already established in Paraná, which generate jobs, to expand production with benefits from the state," highlighted Governor Beto Richa.

He emphasizes that Paraná's tax policy is fair, efficient, and suited to the needs of business owners. "Today, Paraná undoubtedly has the best business environment in the country. This is a reflection of a government guided by dialogue and good relations with the private sector," he stated.

The governor also highlighted the Paraná Competitivo program, which ensures various benefits for companies that invest in the state. "In just over two and a half years, we have consolidated R$ 25 billion in new investments that are generating 150 jobs. We are experiencing the largest industrialization cycle in the state's history."

RESEARCH - The CNI/Sebrae survey also points to the three main reasons why Paraná achieved first place. The first is the reduction of ICMS (Value Added Tax) for companies with revenue up to R$ 540 in 12 months, and the reduction of tax rates for those with gross revenue between R$ 540 and R$ 3,6 million in 12 months.

Another factor is that in Paraná there is no equalization of tax rates in interstate purchases of raw materials or goods for resale. Furthermore, the ICMS tax substitution only applies to products with national agreements, and the tax that would be due by all links along the chain is concentrated in a single stage.

The state finance secretary, Luiz Carlos Hauly, said that the research results reinforce the importance of the policy determined by Governor Beto Richa to alleviate the tax burden on small entrepreneurs and promote job and income generation in the state. "The research shows that we have become a competitive state," he said.

The survey analyzed six industrial sectors (footwear, dairy, furniture, bakery, materials, ceramics, and clothing), six commercial sectors (auto parts, pharmacies, construction materials, grocery stores, restaurants, and clothing), and one service sector (early childhood education). Paraná leads in 20 of the 24 rankings.

PROGRAMS - The Secretary of Industry, Commerce and Mercosur Affairs, Ricardo Barros, adds that in addition to having the best tax policy in the country, entrepreneurs in Paraná have the support of the Bom Negócio Paraná program, which combines free management training and easier access to financing through the Banco do Empreendedor, linked to Fomento Paraná.

"Entrepreneurs in the state have access to one of the lowest interest rates in the country. This money can be used for working capital, construction, the purchase of machinery, equipment, and land, among other investments," Barros points out.

The state of Paraná also benefits from the regional work of the Forum of Micro and Small Enterprises of the State of Paraná (Fopeme). This Paraná organization is one of the pioneers in the country, considered a national benchmark, and in the last two years has led debates and discussions on legislation, taxation, credit, workforce training, exports, and deregulation.

State law expands benefits for micro and small businesses.

The Secretary of State for Finance, Luiz Carlos Hauly, stated that the results of the CNI/Sebrae survey show that, due to state legislation, the reduction in the tax rate for small businesses in Paraná is even greater than that foreseen by the General Law, for which he was the rapporteur in the National Congress.

"For a company that invoices between R$ 360 and R$ 540, the ICMS (Value Added Tax) to be collected is 2,33%. In Paraná, the rate is 0,67%," Hauly exemplifies. "The study developed by the two entities was already known to the State Government," says the secretary.

Hauly points out that, of the 300 active companies in the state, 250 are micro and small businesses registered under the Simples Nacional tax regime. Of these, 200 are exempt from paying the Tax on the Circulation of Goods and Services (ICMS) because they fall within the revenue bracket of up to R$ 360 per year.

"If all 250 micro and small businesses collected ICMS (a state sales tax), the revenue would be R$ 2 billion per year; under the General Law, the total would fall to R$ 1 billion. With the benefits provided by the State Law for Micro and Small Businesses, the tax falls to R$ 500 million per year," explains Hauly.

The benefits generated by these sectors, due to the incentives granted by the State, are enormous from a socioeconomic point of view, argues the secretary. "With the reduction of the tax burden, the State Government contributes to increasing the longevity of these companies, which gain competitiveness in the market, generate wealth and income. Micro and small businesses account for 60% of the jobs in the State and are responsible for 70% of job creation in the country," emphasizes Hauly. 

Check out the full study.