It’s time to rethink the issue of state variable taxes, argues economist

Infinity Asset’s chief economist, Jason Vieira, argues that “it’s time to rethink the issue of variable taxes” for states.

Last Wednesday (26), the Chamber approved the bill that establishes a limit of 17% for the collection of ICMS on goods and services that are now considered essential. The text now goes to the Federal Senate.

In an interview with CNN Radio Jason stated that “the ICMS issue brings a comparative disadvantage in terms of collection for part of the states and is a cost that is imposed on the consumer.”

Thus, for him, “it is time to rethink the issue of variable taxes that can reach 29% and the series of very essential items and time to rethink the series of taxes that impact the most working class that is directly and indirectly most affected .”

The economist explains that the states are in surplus, largely, “thanks to generous taxes” and this portion should rethink the tax burden. “But that will not happen, there will be judicialization [por parte dos estados] to try to reverse.”

Even so, the specialist said he was in favor of “this improvement in perception in relation to ICMS” that he attributes to the PL.

Jason Vieira believes that the great distortions that happen in Brazil come “from the absence of a decent tax matrix”.

“There is disparity because of the federative pact, which is poorly designed, and this matrix is ​​counterproductive in many aspects. The dividend taxation situation would need to rethink the taxation of legal entities, which is excessively distorted.”

The ideal, according to Jason, would be a change that would come from the process of tax reform. “With it, you arrive at the fantastic conclusion that the state needs to be better modeled, better dimensioned. Obviously, we have a scenario today in which the situation is always favorable to the state, it is in that positive position for itself. We have the most expensive judiciary and legislature in the world”, he added.