Dear readers, a "outlier" year is coming to an end, for some sectors a more difficult year than for others
We start 2024 receiving, for approval, o PLP 68/2023, intended for the implementation of tax reform, but more directly from the IBS and the CBS, that result in VAT (Value Added Tax), that will affect everyone, industry, commerce, service and consumers; e o PLP 108/2023, that will be implemented by the Tax Reform Management Committee, that will take care of how all tax revenue will be managed and distributed, the inspections and other governmental attributes; committee, this, with many controversies to be addressed
Let's avoid, here, go into details of the tax reform, even because, após o PLP 68/2023 ter sido trabalhado há “n” mãos na Câmara, including all the work of lobbyists and interest groups, in which each one sought to defend their sector, not always in line with the country's interests, the report was approved and sent to the Senate, with an expected VAT of 26,5%, result of all the modifications, reductions and exceptions introduced in the PL. It is worth remembering that when the tax reform began, the estimated VAT would be around 22%
Now, in the Senate proceedings, there is already talk of VAT higher than 28%, logically due to more exceptions and adjustments always justified. We will have the highest VAT in the world, to what is known, surpassing that of Hungary, what is 27%. And more, a careful reading, com mais profundidade do PL68/2023, shows that there is no limit to VAT, able to exceed 28%, and only after completing the implementation of the tax reform, in 2032, it will be verified the VAT applied and a bill will be created suggesting to remove exceptions and eliminate imbalances, seeking to reach 26,5%. So, it's hard to think that after years of implementing tax reform and excess revenue or, let's say, collection outside the planned percentage, there will be a strong correction and reduction. Let's wait for the impacts on the economy and retail, mainly
Walking through 2024, we found another battle, exhaustive, but not finished, the return of the Import Tax on small value sales operations via cross-border. It was an intense fight, with dozens of associations and retail institutes presenting technical and social arguments for job elimination in the country to Congress and the Executive, in addition to initiatives with the Judiciary, in the case, the STF (Federal Supreme Court), to return the 60% tax that was reduced to zero. One of the most consistent studies commissioned by the IDV (Institute for Retail Development) with the IBPT (Brazilian Institute of Tax Planning) confirmed what everyone knew and knows, the average tax burden in the supply chain to the end consumer is over 90%, logo, the battle has not ended. We have to evolve, once approved and in effect until now leads to a tax burden of 44,6%, (composition of Import Tax of 20% + 17% of ICMS modal). It's easy to conclude that, despite some improvement, we are halfway there and we need to achieve tax equality. This cross-border issue still has other important points, unacceptable, how the entry of imported products without certifications. The same ones that are required in the domestic market with heavy penalties when not complied with
The two themes addressed above, tax reform and cross-border, would already be enough to demonstrate how much energy is required to work and undertake in Brazil, however, next, he raised another topic, also very relevant to the economy, as bets
Bets have taken billions of reais out of circulation in retail, services, education and other sectors, generating high expenses for public health in the treatment of gambling addiction and harming the well-being of thousands of families. The amounts wagered reached around R$ 90 billion in 2023, and the forecast is R$ 200 billion in 2024. Many surveys have been conducted with the population, and none showed benefits from the existence of the bets, only harms, highlighting that, in them, electronic casinos and tiger games were included
The regulations from the Ministry of Finance for the regulation of bets have arrived, gentle, of little impact, leading organized civil society to request the repeal of the law that establishes electronic games in Brazil. For example, the tax to be paid by betting companies is only 12%, one of the lowest rates ever known for any business in the country, and it should be much higher, when compared to products that create addiction, like smoke and drink, that exceed 60%. Difficult to understand why such a benefit. There are so many real arguments for the repeal of the betting law or that, at least, I have an appropriate regulation, that would make this article excessively lengthy. The fact is that, at the moment, the matter is in the Supreme Court, that has already determined some urgent corrective measures. AND, if they listen to the population, conforme pesquisa do Datafolha publicada em 24/11/2024 no jornal Folha de S. Paul, 65% of Brazilians believe that betting should be banned and 71% reject betting advertisements. The same survey found that most betting houses rely on promotion through the affiliate model, in which influencers promote betting and earn commissions based on the amounts lost by players, that is, the more the consumer loses the more the affiliate gains
It is worth noting that there are two CPIs regarding bets underway in the National Congress. There is hope that the betting issue will have an appropriate outcome for the Brazilian people
Note that only three topics mentioned above, tax reform, cross-border e bets, shows how 2024 has been challenging for retail, what is our focus here in this article. The retailer is a gladiator, always participating in battles to improve your business, a creative optimist, that faces high interest rates and a profusion of new laws and regulations that arise constantly and forces it to cope with rising expenses. Even so, don't give up, there is a market and customers to be served and seeks opportunities for creating new businesses, improvement in customer service and productivity gains, certainly, providing progress and well-being to society
It would be worth mentioning in this article dozens of legal and operational obligations to which retail and companies in general are subjected, and among many requests we could make to the country's leaders, for the new year, I would highlight one in particular: make Brazil a simpler country to do business
