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Home Taxes in Brazil scare! Data show that 50% of company expenses are with taxes in the electricity sector

Taxes in Brazil scare! Data show that 50% of company expenses are with taxes in the electricity sector

29 April 2022 13 gies: 41
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Taxes in Brazil scare! Data show that 50% of business expenses are with taxes in the electricity sector - Source: Canvas
Brazil taxes scare! Data show that 50% of business expenses are with taxes in the electricity sector – Source: Canvas

A report that was raised in the year 2021 by the Caribbean Statistics survey shows that Brazil's taxes are up to five times higher than those of neighboring countries that have the same development and inflation index. Brazilians complain because they are not seeing the results of so many taxes. In our country, food, salaries, drinks, fuel and even the purchase of a car are paid. And, according to specialists, it is the excess of taxation from the Federal Revenue that makes the situation of the electricity sector in Brazil even more complex. 

According to a survey that was shared through a press office, and raised by PwC and the Instituto Acende Brasil, it is estimated that the taxes that are charged in the electricity sector in our country reach at least 50% of all the expenses that companies brands have for the production of their products.

 This excess of taxation makes the entry of cars using this type of technology even more delayed: there is no incentive by the Revenue for greater sustainability and practicality in traffic, as well as the reduction of carbon dioxide emissions, one of the main greenhouse effect causes. 

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IMDT has a video that addresses more about the contradictions of taxation in the electricity sector, see the material below 

Electric car sector is a way to get the economy back on track, but it is being barred from all sides 

Data that is shared by the Ministry of Mines and Energy show that it is estimated that, each year, there is a movement of at least R$ 400 billion in the electricity sector. That is, companies would be paying high taxes for production just because of the energy used, which impacts differently on the consumer's pocket as with the increase in inflation. 

In this way, a tax reduction / revision could be crucial for the Brazilian economy to resume in 2022. Even more so in this post-pandemic recovery scenario in which ANIP estimates that companies will grow by just 1,4%. 

From last year until April 2022, in its fortnight, it had been decreed that there would be the imposition of the shortage tariff, which would charge an additional amount at the end of the month on the amount spent. Meanwhile, the solar energy, which is sustainable, is still expensive for many families: it is estimated that the investment for a four-person house is around R$30. 

Electricity price is scary – and taxes are largely on this slice

Lucas Ribeiro, CEO of ROIT, states that the amount being charged for electricity is one of the factors that makes prices more expensive for consumers, which vary from the manufacture of clothes to the conservation of food inside the markets. According to him, nowadays there are several taxes that end up focusing on the transmission of energy until products considered basic arrive at our house. 

According to specialist Ribeiro, it is estimated that there are more than 2 billion taxation scenarios possible for Brazil. Therefore, it may be practically unfeasible to have a more in-depth discussion about each one of them. Another aspect is that studying each of the tax collection points that we have in our country takes time and investment, which is a long way to go. 

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