São Paulo, March 11, 2004 (Agência Brasil - ABr) - The American Chamber of Commerce (Amcham) announced, yesterday (10), its position in favor of a new reform in Brazil's tax system, as an incentive for more investments in the country. This affirmation was made by Amcham president, Sérgio Haberfeld.

For the Amcham Council, which represents its 5.5 thousand members, investments are the synonym of economic growth and employment generation. Amcham thinks that the reform approved by the government represents less than what the country needed, since the tax structure that remains encourages tax evasion, corruption, and a general increase in informal activity.

The Amcham claims that interference by the governors to avoid a unified state sales tax (ICMS) rekindled the tax war and practically nullified the initial project. According to the Chamber, levels of revenue collection were maintained, and import levies were raised, reducing Brazil's ability to compete on foreign markets. (DAS)