National simple: Constitutionality Analysis of Exclusions Sectorial

Abstract

 The Constitution defines the favored legal treatment for small businesses without making any explicit exception, including and especially for tax obligations. Nevertheless, all the laws, which have introduced tax benefits guided by this higher provision, have discriminated small companies due to the economic sector of activity. Known as “National Simple” and introduced by the Complementary Law No. 123/06, the current legislation did not extend its benefits to small production units of a number of industries, such as the automotive industry, the passenger transport industry, the energy industry and the industry of manufacture of weapons, beverages and tobacco products. By demonstrating the mistakes of the arguments in favor of such exclusions, the article holds up that none of these provisions meets constitutional standards. Furthermore, based on a critical analysis of the Positive Law, it is shown that the hidden desire behind the exclusions was to keep the economic sectors of high profitability under control of big corporations to the detriment of smaller initiatives.