Brazil loses annually US$ 136 billion due to tax evasion caused by lack of border enforcement, according to a warning from the president of the National Association of Estate Tax Auditors (Febrafite), Rodrigo Spada.
The issue was discussed on the Gente Jornal of Rádio Bandeirantes this Wednesday (13), focusing on the fragility of the Federal Revenue Service’s workforce, which, according to Spada, is insufficient to combat the entry of illegal products into Brazil.
The president of Febrafite highlighted that the lack of border enforcement facilitates smuggling, especially of products like cigarettes, which enters Brazil mainly through the land border with Paraguay.
The high tax burden on consumption was also pointed out by Spada as a factor that exacerbates the problem, encouraging smuggling and, consequently, harming tax collection and Brazilian society.
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In addition to Spada, the director of the National Association of Federal Revenue Auditors of Brazil, George Lima de Sousa, also participated in the series of reports broadcasted by Jornal da Band, called “Challenges for Security at the Borders.”
Country Needs Greater Investments in Border Enforcement
Sousa reinforced the need for greater investments in border enforcement, including the hiring of more auditors, and highlighted that the resources from the Special Fund for the Development and Improvement of Enforcement Activities, as provided by the Constitution, have not been allocated correctly to the Federal Revenue Service for years.
The series “Challenges for Security at the Borders,” which consists of four episodes, began to be aired this Monday (11) on Jornal da Band.
The coverage features experts and representatives of enforcement entities, who point out the deficiencies at Brazil’s borders and discuss the urgent need for investments and changes in legislation to improve tax control and combat the tax evasion that so impacts the country.
For Febrafite, the solution involves increasing the resources allocated to the Federal Revenue Service and creating policies that prioritize border enforcement, enabling a fairer and more efficient tax collection for Brazil.
