Luiz Guilherme Schymura, director-general of Anatel, says he has held talks with fixed-line and mobile telcos to help them negotiate a reduction in state-collected sales tax (ICMS) with the National Tax Policy Council (Confaz), a junta of state finance secretaries. He has advised telcos to submit a counter-proposal to Confaz, he adds, arguing that an ICMS tax cut would allow them to reduce prices and grow traffic, thus maintaining tax revenue at current levels. Commenting on the tax reform bill sent by the Government to Congress that includes higher rates of payroll tax (PIS), both Mr Schymura and Communications Minister Juarez Quadros say they tried in vain to persuade the economic team to exempt the telecoms industry. The economic team?s response was that ICMS is what really affects the industry: ?they said ICMS isn?t the Federal Government?s problem?.
Brazil's risk
