According to the technical note, the 2024 value increased by 46.9% compared to 2023 expenses, the total of which was R$537.6 billion
Tax spending for the year 2024 reached R$789.6 billion, according to Unafisco’s “Tax Privilege” survey. The value represents an increase of 46.9% compared to 2023, whose total reached R$537.6 billion. read here in full (PDF – 481 kB).
The technical note from Unafisco takes into account the values of exemptions, amnesties, remissions, subsidies and benefits of a financial, tax and credit nature. According to the organization, the data was taken from the DGT (Statement of Tax Expenditures) of the federal government and omissions identified by the institution.
According to Unafisco, the study seeks “foster the debate on tax policy in Brazil” with the presentation of tax gastros in detail. For the institution, it is necessary to have “greater transparency and review of tax expenditures, to ensure that they meet the constitutional objectives of economic development and reduction of inequalities“.
“The technical note highlights that the identified tax privileges represent a significant loss of revenue that could be used for more effective public policies“, says the institution.
EXPENSES CONSIDERED “PRIVILEGES”
1. Exemption of Profits and Dividends Distributed by Legal Entities:
- Value: R$160.1 billion;
- Justification: The exemption of profits and dividends distributed by legal entities is considered a significant tax privilege, as there is no adequate counterpart for sustainable economic development or reduction of inequalities.
2. Non-Institution of the Tax on Large Fortunes (IGF):
- Value: R$76.46 billion;
- Justification: The lack of regulation of the IGF, constitutionally foreseen, is seen as a privilege that protects the richest layer of the population, resulting in a significant loss of revenue.
3. Benefits of the Manaus Free Zone:
- Value: R$30.99 billion;
- Justification: The tax benefits granted to the Manaus Free Trade Zone are considered privileges due to the lack of proof of adequate compensation.
4. Special Installment Programs (Refis):
- Value: R$29.37 billion;
- Justification: Special installment programs, which include amnesties and remissions, are considered tax privileges, as they reduce the amount of tax credit due without a clear counterpart.
5. Simples Nacional:
- Value: R$125.36 billion (partially considered a privilege);
- Justification: Although Simples Nacional is an important incentive for micro and small companies, part of the benefit is considered a privilege, especially for companies with high revenues that do not contribute significantly to job creation.
6. Exemption from the Basic Basket:
- Value: R$38.99 billion (partially considered a privilege);
- Justification: The relief from the basic food basket is partially considered a privilege, as it also benefits taxpayers with greater contributory capacity.
7. Benefits for Philanthropic Entities:
- Value: R$19.75 billion;
- Justification: Tax benefits granted to philanthropic entities are considered privileges due to the lack of proof of adequate compensation.
8. Benefits of SUDENE and SUDAM:
- Values: R$ 23.58 billion (SUDENE) and R$ 15.42 billion (SUDAM).;
- Justification: The tax benefits granted to the SUDENE and SUDAM regions are considered privileges due to the lack of proof of adequate compensation.
9. Benefits for Chemicals and Pharmaceuticals:
- Value: R$10.80 billion;
- Justification: The tax benefits granted to the chemical and pharmaceutical products sector are considered privileges due to the lack of proof of adequate counterparts.
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