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Positive Register could increase state tax collection in Espírito Santo by more than R$ 4.1 billion
With no change in tax rates, the amount collected from IPVA and ICMS is expected to increase by an average of 3.6% per year nationwide.
Espírito Santo, June 26, 2019 - Valid as of July 9, the Positive Registry is expected to generate a significant increase in state tax collection. According to a study by ANBC (National Association of Credit Bureaus), the expansion of credit, one of the main benefits of the new CP, will favor the economy of the states by increasing the amount received from IPVA and ICMS. In Espírito Santo, which currently collects around R$ 112.9 billion in taxes, the introduction of the Positive Register with automatic inclusion of consumers will increase this figure in the medium term to R$ 117 billion, or around R$ 4.1 billion more.
Currently, without the Cadastro Positivo, the sum of these taxes collected by Brazilian states is R$ 5.587 trillion. With the new model, this amount is expected to reach R$ 5.793 trillion in about ten years, totaling an expansion of R$ 205.7 billion over the period, due to the stimulus of economic activity.
The survey also points out that the new Positive Registry model could inject R$ 20 billion into Espírito Santo's economy, provide access to credit for an additional 316,000 consumers and reduce delinquency in the state by 45%.
Elias Sfeir, president of ANBC, says: “The states depend vitally on IPVA and ICMS revenue to invest in social programs, especially in health and education, and the new Cadastro Positivo model could be the solution to raising more revenue without increasing taxes.”
Among the main social benefits of the new Positive Registry, Sfeir highlights more accessible and cheaper credit through the credit rating, with the potential to reduce default by 45%, which currently affects around 60 million Brazilians, equivalent to 40% of the economically active population. The initiative also has the potential to generate more jobs and income for citizens, both by expanding credit to companies by R$ 790 billion, especially MSEs, and by the possibility of increasing annual GDP by 0.54% p.a. and thus injecting up to R$ 1.1 trillion into the economy in the medium term.
ANBC Press Relations
Regina Pimenta: (11) 98136.6835 regina@pimenta.com
Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com
