Tax reform could bring an increase of up to 20% in internet prices

The Brazilian Internet Association (Abranet) estimates that the approval of the tax reform as it stands could generate an increase of up to 20% in prices for the end consumer. At a breakfast with parliamentarians in Brasília, associations representing the information technology sector asked for equal treatment for the segment.

The text is expected to be voted on in plenary this Wednesday (8/11). Senator Izalci Lucas (PSDB-DF) said that he intends to include the sector within the differentiated rates. “We presented an amendment to include the information technology sector in this differentiated rate. We will discuss this in the plenary until the last minute,” he declared.

The leaders of the associations defend the inclusion of the digital, internet, innovation, information technology and IT services sector and similar sectors in the tax rate reduced by 60% of the standard rate.

According to the director of Abranet, Eduardo Parajo, the possible approval of the current text will increase costs for the IT and internet sector, as it will increase taxes on companies’ payroll and, consequently, the end consumer will be harmed by an increase in prices on digital services, such as the internet.

“The negative impact will be high for the population. This increase in taxes in the sector will result in an increase in internet costs for the end user of between 15 and 20%. Unfortunately, this impact is not being observed in the reform”, said Parajo.